This has been the seventh consecutive rate cut by the central bank since July last year. The latest cut was made due to the harsh effects of the COVID-19 pandemic on the Brazilian economy.
So far, Brazil has reported 125,218 confirmed COVID-19 cases with 8,536 deaths. However, several studies suggested that the accurate number is severely under-reported.
Another rate cut, no higher than the current one, may be made in the near future, stated the Copom, the majority of which favored a more gradual cut.
The committee added that Brazil's inflation may fall below projected levels.
As frustration over delay in reforms and new fiscal policies could lead to higher inflation, a continuation of the reform agenda should be guaranteed to allow for a sustainable recovery of the Brazilian economy, it said.
The Copom meets every six weeks to analyze the Selic. Its next meeting is scheduled for June 17.
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