Brazil's Central Bank has cut the country's benchmark interest rate (SELIC) for the fifth consecutive time. By unanimous decision this Wednesday (April 12), the Monetary Policy Committee (COPOM) lowered the SELIC rate by 1 percentage point from 12.25% to 11.25% per annum, a move that had been anticipated by financial analysts.

With the latest cut, the SELIC rate has returned to the same level it was in December 2014. The impact of regulated prices, including public utility rates, and prices of food items such as beans and milk, were leading inflationary pressures until August 2016. Since then, however, inflation has begun to ease off because of the economic recession and the decreasing dollar rate against the real.

Interest cuts help boost the economy by encouraging production and consumption in times of economic slowdown.