Brazil cuts rates to an all-time low, 7%, and hints at another reduction

Thursday, December 7th 2017 - 08:35 UTC

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Brazil’s central bank cut interest rates to an all-time low on Wednesday and hinted at a smaller reduction early next year, although it said it would be extra cautious going forward. The bank’s nine-member monetary policy committee, known as Copom, cut the benchmark Selic rate by 50 basis points to 7.00%, capping a 725 basis-point decline since October 2016. Read full article

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Eric Ehrmann
Central Bank operates as part of Finance Ministry and its boss Henrique Meirelles, whose machinations on butchering the nation's pension system (Economist and Financial Times say “reforming”) have even drawn ire of his boss president Temer, who's “shock troops” still unable to bully enough legislators to agree to pass a “watered down” reform. Flip side; to bring in revenue now is squeezing ordinary people with increases in cooking gas prices, monthly electricity bills and gasoline (some of which Brazil has to import and pay for in dollars, while trumpeting lower prices on basic food items for the masses. This is a tenuous strategy and could depend on behavior of new “Trump Fed”.
Dec 07th, 2017 - 10:11 am - Link - Report abuse 0
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