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BRASILIA, July 26 (Reuters) - Brazil's central bank cut interest rates below 10 percent for the first time in nearly four years on Wednesday, keeping a fast pace of monetary easing as plunging inflation gave it leeway to aid an incipient recovery.
The bank's nine-member monetary policy committee, known as Copom, cut its benchmark Selic rate by 100 basis points for the third straight time to 9.25 percent. The decision was widely expected by economists in a Reuters poll.
It was the seventh cut since October in a cycle expected to take rates as low as 8 percent by the end of the year, according to a Reuters poll of economists. The last time the Selic rate was below 10 percent was in November 2013.
The bank said it could continue to cut rates at this pace at its September meeting, depending on the economic scenario.
"Despite the increase in uncertainty regarding the evolution of reforms and adjustments in the economy, the continuation of economic conditions so far has allowed the same pace of monetary easing at this meeting," the bank wrote in a statement accompanying its policy decision.
Lower interest rates should help Brazil's economy accelerate after its worst recession on record ended in the first quarter. Inflation, which surpassed 10 percent less than two years ago, has plunged to just 2.78 percent, the lowest in 18 years and below the lower bound of the official goal. (Reporting by Silvio Cascione; Editing by Andrew Hay)