Brazil's Central Bank cuts benchmark interest rate to 13.75 pct

As widely expected, Brazil's Central Bank cuts benchmark interest rate to 13.75% and according to the announcement, interest rate decision was taken "unanimously".

Key headlines (via Reuters):

• Convergence of inflation to target in 2017 and 2018 is compatible with gradual reduction of rates
• Pace of disinflation could intensify if economic recovery takes longer
• Forecasts 2017 inflation at 4.4 pct
• Sees 2018 inflation at around 3.6 pct
• Possible end of benign period for emerging economies could complicate disinflation process
• Lingering signs of pause in disinflation of some prices could suggest slower convergence of inflation to target
• Process of fiscal adjustment is long, with many uncertainties
• Weaker economic activity could lead to faster disinflation
• Inflation has been more favorable in the short term
• Approval of fiscal reforms could come faster than expected
• Sees high probability of normalization of rates in united states in the short term, uncertainties around its economic policy