Real Rises Even as Central Bank Lowers Main Interest Rate

Brazil’s central bank lowered its main interest rate today in an effort to boost economic growth. The Brazilian real declined against the US dollar after that monetary policy decision.
The Banco Central do Brasil (Brazil’s central bank) cut its key interest rate to 8.5 percent from 9 percent today. Such move was expected by most analysts. The central bank has cut lending rates by four percentage points since August, attempting to revive the declining economy. So far, the efforts were rather futile.
USD/BRL rose from 2.0164 to the daily maximum of 2.0220 as of 13:09 GMT today.

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