Brazil raised the benchmark rate to 10.5%: combating inflation the target

Thursday, January 16th 2014 - 09:17 UTC

Full article 4 comments

Brazil's central bank raised its benchmark interest rate on Wednesday to 10.50% from 10%, a larger-than-expected hike aimed at curbing inflation in spite of a weak economy. The decision by the bank's monetary policy committee, Copom, was unanimous. Read full article

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Jack Bauer
The Brazilian Government , as well as the general media, always refer to the increase in the cost of living, as inflation. as if they were synonymous....anybody with half abrain should know that although they may go hand-in-hand, they are essentially different and have different origins. To put it simply, the government creates inflation by printing money (if the increase in national wealth does not follow, at the same pace), and an increase in cost living would be the result of your landlord doubling your rent, while your salary remains the same....it's so simple, yet the government, always spending more than it receives in taxes, tries to fool everyone that THEY are not the cause of inflation....
Jan 16th, 2014 - 05:24 pm - Link - Report abuse 0
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Brasileiro
Inflation supply should not be fought with repression of consumption!
Brazil must overcome the bad things. Desire to consume is not one of them.

Poor not wide bone, even with a steak in sight.
Jan 16th, 2014 - 08:44 pm - Link - Report abuse 0
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ChrisR
Let's face it, nobody, that's NOBODY AT ALL knows WTF to do with the Brazilian economy.

But wait! There is one entity who DOES know, can anybody guess his name?

YES, it's MR. MARKET, he will sort it out, don't worry.

You may not like what he does, but who cares, it's only Brazil?
Jan 16th, 2014 - 09:29 pm - Link - Report abuse 0
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Jack Bauer
Brasileiro (#2), sure, that's the PT's way of fighting inflation....raise the bloody interest rates, and penalize “consumption”, which on principle, should be available to everyone...as long as it's not based solely on credit, credit and more credit. The government, in order to incentivate consumption, reduces tax aliquots on certain products, facilitates financing, thus sponsoring buying sprees for those that really can't afford it - then they clamp down, raising the interest rates, making the bankers richer and the people poorer.....the government should allow the market to find it's own level, not boost it up artificially for political purposes, then bullshit everyone into believing that it (the govnmt) knows what they're doing. The fact is that it just keep on printing money to cover its uncontrollable expenses, causing inflation and making your paper money worthless.
Jan 17th, 2014 - 09:43 pm - Link - Report abuse 0
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