|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    21st of February 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Economy News feed Economy News

All Financial News feed All Financial News

Brazil in unexpected interest rate cut

Bookmark and Share

by Kay Mitchell

Brazil’s central bank has cut the country’s key interest rate to 12% from 12.5% – a move which surprised economists.

However, the bank said there had been a “substantial deterioration” in the outlook for the global economy and that was its reason for the rate cut.

One analyst said the rate cut is a “huge mistake” and said the bank could lose credibility as a result.

The bank has lifted interest rates five times this year in a bid to tame rising inflation – something which many central banks are doing throughout the world.

Brazil, which is one of the world’s fastest growing economies, recently admitted that inflation is spiralling out of control.

Earlier this week, the central bank said inflation will rise to 6.31% by the end of the year – well above the 4.5% midpoint of the bank’s target.

Meanwhile, Brazil‘s economy, which is the largest in Latin America, grew more than 7% in 2010 and is forecast to expand between 4.5% and 5% in 2011.

Former President Luiz Inacio Lula da Silva, said Brazil will become the world’s fifth largest economy by 2016.

Finally, the country’s unemployment rate fell to an all-time low of 6% in July.

Discuss this in the Finance Markets forums

Story link: Brazil in unexpected interest rate cut

News posted: September 1, 2011

Financial Services:

Related financial stories to: Brazil in unexpected interest rate cut:
Previous: «
Next: »

Visited 2102 times, 1 so far today

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Tags: , , , ,