Some economists had expected a 50 basis point cut in the Selic rate to 13.5%, but the central bank opted for a 25 basis point move. Nevertheless, a cycle is underway, as this is the second rate reduction in two months.
Prior to October's move, there hadn't been a rate cut in four years.
Giving room for the central bank to move is a noticeable slowing in inflation - to 7.9% in October from nearly 11% at the start of the year (the target is 4.5%).
Then there's the economy - expected to contract 3.5% this year after shrinking 3.8% in 2015.
EWZ +1.35% on the session, +63% for the year.
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