Latin American central banks defy the Fed and cut rates to revive their economies

The monetary authorities of Colombia and Peru decided to cut their benchmark interest rates by 25 basis points in an effort to revive bank lending and construction.

The move marks a break with the hard line imposed by the U.S. Federal Reserve and contrasts with the stance of Brazil's central bank, which opted to hold the Selic rate, the benchmark rate of the Brazilian economy, at a high 10.50% a year, citing concerns over domestic fiscal pressures.