Brazil raises benchmark interest to 9% hoping to rein in inflation

Wednesday, August 28th 2013 - 21:56 UTC

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Brazil raised on Wednesday its Selic benchmark interest rate to 9% from 8.5% in a further attempt to rein in inflation. The central bank's monetary policy committee, the Copom, voted unanimously for a third straight half percentage point rate rise. Read full article

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Anglotino
With growth at 1.9% that is going to cause problems.

Brazil just refuses to tackle the bottlenecks in its economy. Low growth with high interest rates and high inflation is a recipe for trouble.
Aug 28th, 2013 - 10:09 pm - Link - Report abuse 0
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The Chilean perspective
Rein in inflation..... That's not the real motive, it's more like they want to stop the free fall of their currency. Good luck Brasileros, you're going to bring on a recession if you lift rates to those ridiculous levels. Why not try lowering government expenditure.
Aug 28th, 2013 - 10:13 pm - Link - Report abuse 0
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ChrisR
2 The Chilean perspective

Exactly! The fiscal drag and money being bled out of the government by corruption and the complete lack of a cohesive finance policy is what is driving this unsure view of Brazil by international investors.

Having Mantega lying every time he opens his mouth is really starting to hurt Brazil’s credence.
Aug 29th, 2013 - 03:42 pm - Link - Report abuse 0
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