Brazils central bank has cut its benchmark interest rate to a record low of 7.5% in an attempt to reignite a stalled economic recovery.The cut, from the previous level of 8%, in the main Selic rate follows recently unveiled government stimulus measures. The central bank move is the ninth cut in a row since August last year, as the growth rate has fallen dramatically from the 7.5% recorded in 2012.Now the economy is forecast to grow by less than 2% this year.The monetary policy committee left the door open for future interest rate reductions, which some analysts expect to happen as early as October.If future conditions were to allow for an additional adjustment of monetary conditions, that movement should be conducted with maximum parsimony, the bank said in the statement. Policymakers face the delicate act of balancing between boosting growth and keeping inflation in check, after it was pushed up by higher global food prices and tax cuts on car sales. It reversed a downward trend in the 12-month inflation rate that began in September 2011. The annual inflation currently stands at 5.2%, above the central bank target of 4.5%.
