By Paulo Trevisani and Nicholas G. Miller
Brazil's central bank cut interest rates for the third consecutive time as economic growth remains sluggish even as inflation stays high.
The bank's monetary committee, or Copom, cut the Selic benchmark lending rate to 14.25% from 14.5%. But the monetary authority indicated that uncertainty around its inflation projections remains higher than usual.
"The global environment remains uncertain due to the lack of definition on the terms of the agreement for the end of the armed conflicts in the Middle East, and the consequences of the already materialized effects of these conflicts until this moment, altering global financial conditions," Copom said.
The central bank stopped short of indicating what it is going to do next, which amounted to a dovish move, Goldman Sachs economist Alberto Ramos said.
