The Brazilian Monetary Policy Committee (Copom) of the Central Bank (BC) raised the base interest rate (Selic) by 0.75 percentage point, from 13% to 13.75% a year. This is the fourth consecutive hike in Selic and the highest is almost two years.
Petrobras announced this week that the completion of the Iara well drilling (which first found oil in August 2007) confirmed the discovery of light oil in the Santos basin pre-salt reservoir with a recoverable volume estimated in 3 to 4 billion barrels of light oil and natural gas.
Brazil's economy expanded 6.1% in the second quarter of 2008 compared to the same period a year ago and 1.6% over the previous quarter, according to the latest release from the Brazilian Geography and Statistics Institute, IBGE. Similarly in the first half of this year Brazil's GDP increased 6% compared to the same period a year ago.
Brazil's Companhia Vale do Rio Doce, the world's largest iron ore miner, said it is negotiating price increases with its clients in Asia to put them at the same rate as European customers.
Brazil's Bovespa index fell 4.5% on Tuesday and the lowest level in a year as prices for top commodity exports slumped and Finance minister Guido Mantega predicted the currency will extend its steepest monthly decline since 2002.
Brazilian president Lula da Silva said he would be choosing his successor in 2010 and anticipated there are great chances that the next president could be a woman, although he did not advance names.
Brazil's consumer prices index in August increased at its slowest pace in 11 months, 0.28% following on a significant drop in food prices according to the latest release from the Brazilian Geography and Statistics Institute, IBGE.
Brazilian coach Dunga and some Brazil players were not happy to hear President Lula da Silva praise Argentine star Lionel Messi and complain about the national team. They called for support and one of them suggested the president should become an Argentine citizen.
President Lula da Silva inaugurated this week Brazil's first extraction of oil from deep waters which highlighted techniques to be applied to vast oil fields found even farther offshore and at greater depths.
Brazil has turned down a formal invitation by Iran to join the Organization of Petroleum Exporting Countries (OPEC) it was reported by the official Iranian news agency.