Brazil chops key rate to 9.75% as growth slows

LOS ANGELES (MarketWatch)
Brazil's central bank late Wednesday cut its benchmark interest rate to 9.75% from 10.5%, marking the fourth consecutive rate reduction as monetary policy makers key in on slower economic growth
The cut of three-quarters of a percentage point was larger than past cuts of a half-percentage point each
Market players started pricing in a higher probability for a larger rate reduction at the March meeting following data showing contraction in the industrial sector
Strength in the Brazil's currency has been cited as reason for sluggish activity in the sector
Data released Wednesday show industrial production dropped 3.4% from a year ago
Brazil's GDP expanded by 2.7% in 2011, much slower than the 7.5% rate in 2010