Brazil holds interest rate steady amid recession

AFP, SAO PAULO: Recession-hit Brazil's central bank left the key interest rate untouched on Wednesday despite rising inflation, opting against an increase that could put a further brake on the world's seventh-biggest economy.
Surprising some observers, the bank left the benchmark Selic rate at 14.25 percent, citing "increased domestic and particularly external uncertainties."
It said central bank chief Alexandre Tombini and five other members of the monetary policy committee had voted to hold the rate steady, while two voted to increase it. 
Officials are under pressure to ease the hardship of  ordinary Brazilians squeezed by rising prices with double-digit inflation.
But the bank has been in a bind, since raising the rate risks further dampening economic activity just as fresh data point to a deep recession this year.
The rate has now been steady since July 2015, when the bank made the last of seven consecutive hikes to try to put a lid on inflation.

Brazil holds interest rate steady amid recession

AFP, SAO PAULO: Recession-hit Brazils central bank left the key interest rate untouched on Wednesday despite rising inflation, opting against an increase that could put a further brake on the worlds seventh-biggest economy. Surprising some observers, the bank left the benchmark Selic rate at 14.25 percent, citing increased domestic and particularly external uncertainties. It said central bank chief Alexandre Tombini andfive other members of the monetary policy committee had voted to hold the rate steady, while two voted to increase it. Officials are under pressure to ease the hardship of ordinary Brazilians squeezed by rising prices with double-digit inflation. But the bank has been in a bind, since raising the rate risks further dampening economic activity just as fresh data point to a deep recession this year. The rate has now been steady since July 2015,when the bank madethe last of seven consecutive hikes to try to put a lid on inflation.