Recession-hit Brazil's central bank in a divided vote left the key interest rate untouched on Wednesday despite rising inflation, opting against an increase that could put a further brake on the world's seventh-biggest economy. Read full article
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My guess is that interest rates will begin to download to support investments directed to export, infrastructure and construction. Intensive activities that generate demand for labor.Jan 21st, 2016 - 10:08 am - Link - Report abuse 0
The Labour government should lower interest rates to a minimum of 4% pa and cover any cash withdrawals invested in treasury bonds with our foreign exchange reserves in dollars.
In my forecast interest in this 4% level they gave Brazil a nominal surplus 10% of GDP per year. What would give the Brazilian government a great power of investment.
Brazil is worse than anyone has been predicting ( except me of course :)Jan 21st, 2016 - 01:08 pm - Link - Report abuse 0
Anyhoo expect the Rial to go to 6/1 and inflation to top 20%
Then its all over
They'll never get inflation down
it will spiral out of control
and Brazilian companies will go bankrupt one after the other trying to pay back their U$ denominated loans
Brazil doesn't have near enough reserves to fix this problem
They'll start burning through them regardless
Their won decade looks a lot like Argentina's won decade
All propaganda with no substance
They have too many poor uneducated people to ever make it out of being a 3rd world sh*thole.
The only surprise to me is that they still have a Central Bank!Jan 21st, 2016 - 02:09 pm - Link - Report abuse 0
Dropping the interest rate to half what it is would encourage the economy and promote employment but it will never happen.
It was not a surprise movebut an expected move!Jan 21st, 2016 - 03:48 pm - Link - Report abuse 0
A:the politics is in a mess,
B:the economy is going down the drain and
C:the corrupt politicians are running helter skelter to save their backsides.
THIS is a perfect recipe either for creating a State of Emergency OR for a Collor-Style Blow - in case if the armed forces are not interested in assuming control.
They've finally realized that increasing the SELIC rate is ineffective as long as Dilma keeps on pouring billions into the economy through handouts to the free-loaders. Dilma and the PT would rather cut investments in all essential sectors before they cut government running expenses....as they HAVE done. Just digging the hole deeper.Jan 21st, 2016 - 07:27 pm - Link - Report abuse 0
Bad Wolf are you Jack Bosta?Jan 21st, 2016 - 09:02 pm - Link - Report abuse 0
PBR under 3.Jan 21st, 2016 - 09:20 pm - Link - Report abuse 0
As PBR goes so does Brazil.
What less to worry us are the United States. You are the past!Jan 21st, 2016 - 09:35 pm - Link - Report abuse 0
I'm sorry. I myself do not want it that way. But ...
The USA will be the richest most powerful nation in the world long after you're dead.Jan 21st, 2016 - 10:32 pm - Link - Report abuse 0
I giggle every time I think about you believing the BRIC nations would ever amount to anything.
You're really dumb.
Central Bank took one for team Dilma and lost credibility big time for it, Real sinking lower and lower and lower now. The crazy thing is that the decision will mean that inflation will hang around for longer, and that is the killer for the poor. Gawd those PT idiots are a bunch of twats.Jan 21st, 2016 - 10:47 pm - Link - Report abuse 0
@6 BRasshole (the one with shit for brains)Jan 22nd, 2016 - 06:22 pm - Link - Report abuse 0
Me, Bad Wolf ???....sorry to disappoint you, asshole, but no.