Brazil cuts Selic rate to 10.25%, lowest since December 2013: slowing inflation and gradual recovery

Wednesday, May 31st 2017 - 22:06 UTC

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The Central Bank of Brazil unanimously cut its key Selic rate by 100 basis points to 10.25 percent on Wednesday May 31st of 2017, as widely anticipated. It is the sixth straight rate decline, bringing borrowing costs to the lowest since December of 2013 amid slowing inflation and a gradual recovery. Read full article

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:o))
Still A Mess: http://google.com/newsstand/s/CBIwuYWBgDU
May 31st, 2017 - 11:49 pm - Link - Report abuse 0
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Jack Bauer
One thing most people - and especially those who are NOW going to demonstrations to protest against the SELIC rate, currently at 10.25% - don't realize, is that :
1) during Dilma's terms, the SELIC rate reached it's highest level in recent years (as part of her failed strategy to control inflation), and no-one, especially the PT, the unions and the 'lefties' in general, complained....far less, protested.
2) While what happens to the SELIC rate (going up, or down) has virtually no influence on prices to the consumer , it does affect the remuneration of certain funds, the investments of which have a heavy concentration on governernment bonds and inter-banking deposits...
3) Further to (2) if you analyse the historic performance of the SELIC, you will notice its reduction has little or NO effect on the interest rates that the market in general pays...such as on outstanding debt on a checking account, on credit cards - varying from 400% to 500% a year - on certain types of bank loans, such as for real estate purchases, vehicles, and even personal loans, usually over 100% a year....which on top of it, still require 'guarantees'...
So, it would seem to me that the protesters are misdirecting their complaints....they should go after the banks as well, which charge these exhorbitant rates regardless of what happens with the SELIC rate, because the government is in cahoots with them...
The reduction in the SELIC rate benefits business, which are eligible for gigantic loans at very low interest rates (good example the J&F conglomerate - JBS), but has hardly any effect on the daily activities of consumers, or on the man in the street.
Jun 01st, 2017 - 06:23 pm - Link - Report abuse 0
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:o))
I'd like to understand the following:

On one hand, all the Investigations & the Operation are [apparently] relentlessly being carried out because The Law is ONE and is Equal; for ALL the citizens REF: [https://www.humorpolitico.com.br/wp-content/uploads/2017/06/elvis-580x290.jpg ] .

While on the Other Hand; the “Special Privileges” and “More Favorable Laws” [practicaly a NEW constitution] are on the anvil, READY to be granted! HOW COME?
Jun 02nd, 2017 - 01:20 am - Link - Report abuse 0
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Jack Bauer
@:o))
“How come ?” we are in Brazil, and by now should be accustomed to the fact that our thieving, lying , unscrupulous politicians will do anything they can to protect their backsides...even if it means changing the laws, as we have seen in several recent attempts.
Jun 02nd, 2017 - 07:33 pm - Link - Report abuse 0
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:o))
THAT's it! : https://www.humorpolitico.com.br/wp-content/uploads/2017/06/Foro-privilegiado-da-o-exemplo-580x411.jpg
Jun 02nd, 2017 - 09:53 pm - Link - Report abuse 0
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