Brazil's central bank cuts interest rate to record 4.5%

[BRASÍLIA] Brazil's central bank cut its key interest rate to a record low on Wednesday, as the country's economic recovery builds momentum.

The bank cut its main rate from 5.0 per cent to 4.5 per cent in a unanimous decision by its monetary policy committee. It was the fourth straight decrease since July.

"Economic activity data for the second quarter indicate Brazil's economic recovery gained traction," the bank said in a statement.

Policymakers assume "this recovery will continue at a gradual pace."

The decision came after official data showed an acceleration in economic growth in the third quarter, spurred by an improvement in agriculture, industry and services.

After stalling in the first three months of the year, the economy has had two consecutive quarters of growth, steering clear of a recession that had seemed likely only months ago.

AFP