Renewable Energy

Brazil central bank cuts reserve requirements by $4.2 bln

Credit: REUTERS/UESLEI MARCELINO

Brazil's central bank said on Wednesday it would ease reserve requirements on time deposits in a move to free up 16.1 billion reais ($4.19 billion) in the national financial system, according to a statement on the bank's website.

BRASILIA, June 26 (Reuters) - Brazil's central bank said on Wednesday it would ease reserve requirements on time deposits in a move to free up 16.1 billion reais ($4.19 billion) in the national financial system, according to a statement on the bank's website.

The central bank on July 1 will lower the reserve rate on time deposits to 31 percent, from 33 percent previously.

The monetary authority said the changes would return reserve requirements on time deposits to levels last seen before the 2008 global financial crisis in an effort to reduce borrowing costs.

($1 = 3.8433 reais)

(Reporting by Jake Spring Editing by James Dalgleish)

((jake.spring@thomsonreuters.com; +55-61-99-653-2429; Reuters Messaging: jake.spring.thomsonreuters.com@reuters.net; Twitter @jakespring))

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