Brazil ups basic rate to 8.5% to combat inflation; markets forecast 9.25%/10% by end of the year

Thursday, July 11th 2013 - 17:02 UTC

Full article 3 comments

Brazil’s central bank raised the benchmark interest rate a third consecutive time and anticipated that the tightening cycle may be extended through the rest of the year as policy makers fight inflation. Read full article

Comments

Disclaimer & comment rules

ChrisR
“the Finance ministry is planning to trim expenditures taking the budget primary surplus to 2.3% of GDP this year. However markets so far are sceptical and estimate that the government will only manage a primary surplus of 1.7% of GDP.”

Sounds like a re-run of the liar Mantega who more or less single handedly destroyed the international inward investment to Brazil by guaranteeing a scenario of depleted cash flow for anybody who invested.

Now Tombini is putting the base rate back to what it used to be (or perhaps even higher): just what has been learnt, if anything, by the government? I suspect the answer to be “nothing”.
Jul 12th, 2013 - 07:28 pm - Link - Report abuse 0
-+
Fred
Dumb PT. Brazil is screwed. The only hope is the 2014 presidential poll.
Jul 13th, 2013 - 12:40 am - Link - Report abuse 0
-+
God.Is.An.Illusion
Many Government Officials are able to increase their own wages. That should be changed. As long as they earn up to BRL 80.000 per month, when the minimum wages are BRL 800 per month. there is something very, very wrong!
Jul 14th, 2013 - 09:38 am - Link - Report abuse 0
-+

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!