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Brazil's central bank lowers interest rate to 14.75% amid cooling inflation and slowing growth, citing global uncertainty and rising oil prices.
Brazil’s central bank cut its benchmark Selic rate to 14.75% from 15%, marking the first reduction in nearly two years as inflation cools but remains above target and economic growth slows.
The move, driven by moderating inflation and weakening growth, was met with caution due to rising global uncertainty, particularly from Middle East conflict driving oil prices up 40% in local currency.
While inflation stood at 3.81% in February, analysts expect a gradual decline, with growth forecast at 1.8% in 2026.
The central bank signaled future cuts are possible but will depend on evolving risks, especially oil prices and geopolitical developments.
El banco central de Brasil reduce la tasa de interés al 14.75% en medio del enfriamiento de la inflación y la desaceleración del crecimiento, citando la incertidumbre global y el aumento de los precios del petróleo.