Brazil cuts benchmark interest rate to 14%

Brazil's central bank cut its benchmark Selic interest rate from 14.25 percent to 14 percent on Wednesday, its fourth consecutive reduction.

The bank's Monetary Policy Committee, known as Copom, announced the decision two months before presidential elections in which Luiz Inacio Lula da Silva is seeking another term.

Lula has advocated lower rates to stimulate South America's largest economy. The central bank has acted cautiously, citing global inflation concerns linked to higher oil prices during the US-Israel war against Iran.

On domestic conditions, the bank said inflation had eased but “still remains above the upper limit of the target.” Year-on-year inflation slowed to 4.64 percent in June, driven by falling food and fuel prices, but remained above the official target range of 1.5 percent to 4.5 percent.