BRASILIA, July 31 (Xinhua) -- The Central Bank of Brazil on Wednesday announced its decision to lower the annual benchmark interest rate from 6.5 percent annually to 6 percent.
The first reduction in the interest rate since March 2018 and the lowest rate since 1986 came after a meeting of the bank's Monetary Policy Committee (Copom).
Financial analysts were expecting the move, though some were anticipating a smaller cut to 6.25 percent.
The lower rate came amid an economic slowdown that has been more notable than expected, and a government push for social security reforms, which are currently in the process of congressional approval.
According to the bank's latest Focus survey of the country's leading financial groups released on Monday, Brazil's economic growth forecast for 2019 was adjusted to 0.82 percent, down from a projected 2.5-percent growth estimated at the start of the year.
The inflation forecast for this year was also adjusted from 3.82 percent to 3.78 percent, the survey said.
As the projected inflation fell within the official target of 4.25 percent, analysts believe there is still ample room for new cuts to the benchmark interest rate.
The rate may drop further, to close at 5.5 percent by the end of the year, analysts said.