The Brazilian Real dropped past 2 per dollars for a second day as President Dilma Rousseff said it has been “extremely overvalued,” encouraging speculation the currency of Latin America’s biggest economy may fall further.
Brazilian President Dilma Rousseff launched on Sunday, (Mother’s Day in South America) a raft of new social programs for low-income families with young children.
The central bank remains independent and the current interest-rate cutting cycle is driven by specific economic factors, not pressure from President Dilma Rousseff, Brazil’s central bank President Alexandre Tombini said in an interview in the Sunday edition of O Estado de S. Paulo.
Foreign Minister Antonio Patriota praised the “great political convergence” between Argentina and Brazil and assured that any existing problems related to the bilateral trade “do not tarnish this very strong reality.”
Investors pulled 1 billion dollars out of Brazil last week as Euro-zone debt fears continue to spook markets and the Brazilian government shows little sign of changing its hefty intervention policies.
Dilma Rousseff is interested in having French elected-president Francois Holland make an official visit to Brasilia to talk about the current world situation since the Brazilian leader believes they both share positions regarding the global crisis and austerity policies.
Brazil will cut returns on new deposits to savings accounts, thereby paving the way for the central bank to further cut its benchmark lending rate, Finance Minister Guido Mantega announced.
Brazilian President Dilma Rousseff plans to unveil changes to rules related to savings accounts on Thursday, government sources said, a key move to pave the way for lower interest rates in Latin America's largest economy.
Brazilian President Dilma Rousseff's administration reached a record-high approval rating in April but voters still long for the return of predecessor Lula da Silva, a newspaper reported.
Brazil lowered its benchmark interest rate to a near-historic low of 9% on Wednesday, as expected, but the central bank surprised with hints that more cuts may follow to revive Latin America's largest economy.