Brazil’s central bank held the country’s benchmark interest rate at two per cent, concerned that the second wave of COVID-19 infections means the economy still may need a boost despite a rise in inflation.
The unanimous decision by the bank’s monetary policy committee keeps the rate at the historically low level set in August 2020 following nine consecutive rate cuts.
“Uncertainties about the pace of economic growth remains higher than normal, especially in the first quarter of this year,” the committee wrote.
It cited “the possible effects of the recent rise in the number of COVID-19 cases,” in an outbreak that has killed nearly 213,000 people, the world’s second-highest death toll after the United States. — AFP
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