Brazil's central bank keeps 14.25% key interest rate

Brazilian Central Bank president-designate Ilan Goldfajns smiles after answering questions from senators in the Economic Affairs Committee in Congress, in Brasilia, June 7, 2016Brasília (AFP) – Brazil’s central bank on Wednesday held its benchmark interest rate at 14.25 percent for a seventh consecutive time, amid the worst recession in decades and political instability. Despite the flailing economy — with a 3.8 percent shrink in GDP last year forecast to persist through 2016 — the latest consensus of 100 economists and analysts in a weekly survey by the Central Bank’s Focus magazine was for no change in the key rate. The three main credit rating agencies have lowered their Brazil rating to junk status.

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