Central Bank of Brazil Keeps Interest Rate at Record Low to Support Economy Amid Inflation Concerns

Brazil's central bank has kept its benchmark interest rate at a record low of 2% per year, as the country grapples with rising inflation and a sluggish economy.

The decision, announced Wednesday, was widely expected by economists and follows a series of rate cuts by the central bank in recent months.

Inflation in Brazil has been rising in recent months, with the annual inflation rate reaching 10.6% in June, the highest level in over a decade. The central bank has been raising interest rates in an effort to curb inflation, but it has also been mindful of the need to support economic growth.

The Brazilian economy has been struggling in recent years, with growth slowing and unemployment rising. The central bank's decision to keep interest rates low is aimed at stimulating economic activity and creating jobs.

However, some economists have warned that the central bank's decision to keep interest rates low could lead to further inflation. They argue that the central bank needs to raise interest rates more aggressively in order to bring inflation under control.

The central bank's decision is likely to be closely watched by investors and businesses in Brazil. If inflation continues to rise, the central bank may be forced to raise interest rates more aggressively, which could hurt economic growth.