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BRASILIA (Reuters) Brazil surprised markets with a larger than expected interest rate cut on Wednesday, as the worst canada goose recession in Brazilian history threatens to stretch into a third year.

canada goose store Consumers shop for food at a market canada goose black friday sale in Sao Paulo, Brazil January 11, 2017. REUTERS/Paulo Whitaker canada goose store

Canada Goose sale In a unanimous vote, the central bank cheap Canada Goose nine member monetary policy committee, known as Copom, decided to Canada Goose Coats On Sale cut its benchmark Selic rate BRCBMP=ECI by 75 basis points to 13.00 percent after two straight cuts of 25 basis points each. Canada Goose sale

An overwhelming majority of analysts had expected a rate cut of Canada Goose Jackets 50 basis points with only a few predicting a more aggressive monetary easing canada goose uk black friday that brought rates to a canada goose clearance sale near two year low.

Canada Goose Jackets The surprise decision could help President Michel Temer breathe new life into the economy amid lingering political tensions, following Canada Goose Outlet last year impeachment of President Dilma buy canada goose jacket Rousseff, and a corruption investigation involving Canada Goose Parka his own party. Canada Goose Jackets

canada goose clearance sale In its post meeting statement, the bank canada goose coats said it had cheap canada goose uk considered a 50 basis points cut but decided to frontload the monetary easing as widespread disinflation and a halting recovery called for more aggressive action. canada goose clearance sale

cheap Canada Goose extension of the cycle and possible revisions of the pace of easing will continue to depend on inflation forecasts and expectations, said the bank, pointing to evidence that the recovery could take longer and be more gradual than expected. cheap Canada Goose

In an unusual statement following the decision, Temer said the drop in rates showed the conditions for a recovery were in place and Canada Goose sale that there was room for more rate cuts.

A consumer shops at a supermarket in Sao Paulo, Brazil January 11, 2017. REUTERS/Paulo Whitaker

buy canada goose jacket cheap The recession, the worst in Brazilian history, has left millions unemployed and bankrupted hundreds of companies, raising pressure on central bank chief Ilan Goldfajn to lower rates, which rank among the world highest. buy canada goose jacket cheap

The sharp slowdown in inflation, which ended 2016 below the 6.5 percent target ceiling after starting the year at double digits, paved the way for the central bank to slash rates.

buy canada goose jacket In its statement, the bank lowered its 2017 inflation forecast Canada Goose Online to 4 percent, below the 4.5 canada goose uk shop percent midpoint of the official target. For 2018, it sees inflation slowing further to 3.4 percent. buy canada goose jacket

canadian goose jacket REMAIN AGGRESSIVE The bank will likely maintain an aggressive pace Canada Goose online of rate cuts for at least its next two meetings as a disappointing recovery canada goose factory sale of the once booming economy will keep dragging canada goose clearance down inflation, analysts said. canadian goose jacket

Canada Goose Outlet Copom will likely take advantage of the more favorable inflation outlook to quickly ease uk canada goose monetary policy, Jankiel Santos, chief economist with Haitong, an investment bank in Sao Paulo. chances of a single digit Selic rate by the end of this year have canada goose uk outlet grown a lot. Canada Goose Outlet

Canada Goose Parka Annual inflation slowed to 6.29 percent in 2016, down canada goose coats on sale from an increase of 10.67 percent in the previous year with inflation in the service industry starting to ease after some past resistance. Canada Goose Parka

canada goose black friday sale The bank decision was applauded by business groups that for years have called for lower rates to jump start activity. canada goose black friday sale

canada goose coats on sale Shortly after the rate decision, Brazil No. canada goose coats on sale

canada goose coats Still, a more robust recovery will remain elusive, according to some economists. canada goose coats

canada goose deals is an aggressive easing cycle. But political uncertainty is limiting the recovery in investments, and the fact uk canada goose outlet that the labor market is very deteriorated is hindering the recovery in consumption, said Juan Jensen, partner with E4 consultancy. canada goose deals

canada goose Temer, who took over the presidency last year after Rousseff dismissal, is expected to rely on rate cuts as a fiscal crisis limits his ability to provide other stimulus. canada goose

canada goose clearance If Temer buy canada goose jacket cheap succeeds in passing a reform cheap goose to slash pension benefits, which represent nearly half of the country expenditures before debt servicing costs, interest canadagooseparks rates could fall further, government officials have said. canada goose clearance

The median Reuters poll forecast for the Selic rate at the canada goose store end of 2017 stood at 10 percent in the poll, with estimates varying canadian goose jacket between 9 percent and 11.25 percent.