BRASILIA, Jan 31 (Reuters) - Brazil's central bank cut its benchmark interest rate by 50 basis points for the fifth consecutive time on Wednesday, and signaled same-sized cuts for its "next meetings."
The bank's rate-setting committee, known as Copom, unanimously reduced its Selic benchmark interest rate to 11.25%, as expected by all 44 economists surveyed by Reuters.
"If the scenario evolves as expected, the Committee members unanimously anticipate further reductions of the same magnitude in the next meetings, and judge that this pace is appropriate to keep the necessary contractionary monetary policy for the disinflationary process," the bank said in its statement.
Central bank governor Roberto Campos Neto had previously made it clear that by signaling further 50 basis point rate cuts ahead, policymakers envisaged keeping the strategy for the committee's next two meetings.
By adhering to the same tone in Wednesday's statement, policymakers are now flagging half-percentage cuts through May, sustaining a robust easing cycle initiated in August that brought borrowing costs down from a six-year high of 13.75%.
The 13.75% rate, which plateaued for nearly a year as the central bank fought a tough battle against inflation, drew sharp criticism from leftist President Luiz Inacio Lula da Silva. (Reporting by Marcela Ayres and Gabriel Stargardter)
