Brazil slashes lending rate to 11.25 percent

Brazil's central bank slashed its benchmark interest rate by 1.5 points to 11.25 percent on Wednesday in an effort to keep recession at bay after Latin America's largest economy registered its sharpest decline in years.

It is the biggest single rate cut since November 2003, when the Selic was lowered from 19 percent to 17.5 percent.

It nevertheless disappointed some industry leaders, who said more aggressive steps are necessary if Brazil is to avoid recession this year as the world economic slowdown lowers demand for its key exports.

The bank announced the cut a day after the government reported that gross domestic product contracted 3.6 percent …