Brazil cuts interest rate for the seventh time to a record low of 8.50%

Thursday, May 31st 2012 - 05:46 UTC

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Brazil's central bank cut interest rates on Wednesday for the seventh straight time to a record low 8.50%, moving into uncharted territory in a bid to shield a fragile recovery from a gloomy global outlook. Read full article

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ChrisR
At least they are thinking about inflation.

I do not like the comment 'to test the boundaries on interest rates,' presuming as it does that the central bank will be able to do something about inflation once / if it starts to accelerate. They will not, given the lag in data that the real world always has.

Hysterisis was almost coined for this sort of information / reaction phase lag.

I do hope and trust that things work out for the economy of Brasil.
May 31st, 2012 - 04:44 pm - Link - Report abuse 0
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