MercoPress, en Español
Get our news on your inbox! Suscribe x
Montevideo, July 21st 2019 - 19:35 UTC
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
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.
Commenting for this story is now closed.If you have a Facebook account, become a fan and comment on our Facebook Page!
Get our news on your inbox!