Brazil cuts rates on Europe fears

Brazil has joined central banks across the world in easing monetary policy after it slashed interest rates by 0.5%.

The move is the third cut since August, bringing the rate down to 11%, as fears for the global economy - and in particular the eurozone - intensify.

A statement from the bank cited the deteriorating outlook in Europe as a major concern , the FT reports. 

Prior to the summer the Banco Central do Brasil was in a tightening cycle to stave off persistently higher inflation but started to cut due to the "restrictive global environment".

China's central bank has also said it will cut the portion of deposits that banks must hold while Western central banks acted yesterday to make dollar loans cheaper to financial institutions in an attempt to boost liquidity and swerve another credit crunch.