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interestrateripoff

Brazil Cuts Interest Rate From 12.5% To 12%

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http://www.reuters.com/article/2011/09/01/brazil-economy-rates-idUSN1E77U1WC20110901

Brazil's central bank on Wednesday unexpectedly cut its benchmark interest rate BRCBMP=ECI to 12 percent from 12.5 percent without bias for future rate decisions.

Following is the text of the statement issued by the central bank's monetary policy committee:

"The monetary policy committee decided to reduce the Selic rate to 12.00 percent per year, without bias, with five votes in favor of the cut and two votes to keep the Selic rate at 12.50 percent. Reevaluating the international scenario, the committee considers that there has been substantial deterioration, shown by, for example, generalized and large reductions in growth projections for the principal economic blocks. The committee understands that this increases the chances that restrictions that are today seen in various mature economies will prolong themselves for a longer period than expected. The committee also notes that in these economies, there appears to be limited space for the utilization of monetary policy and that a restricted fiscal scenario prevails. Therefore, the committee understands that the international scenario shows a bias toward disinflation on the relevant horizon.

"For the committee, the transmission of foreign developments to the Brazilian economy could materialize through various channels, among them the reduction of trade, moderation of investment flows, more restrictive credit conditions and worsening consumer and business sentiment. The committee understands that the complexity surrounding the international environment will contribute to the intensification and acceleration of the current process of moderation of domestic activity, which has already manifested itself, for example, in the reduction of growth forecasts for the Brazilian economy. Therefore, on the relevant horizon, the balance of risks for inflation becomes more favorable. Furthermore, the revision of the outlook for fiscal policy also points in that direction.

Looks like the central bankers are starting to get nervous?

http://online.wsj.com/article/SB10001424053111904716604576543303156017010.html

But Brazil may be engaging in wishful thinking that could backfire by stoking inflation even higher, according to several economists who follow the country and were surprised by the announcement late Wednesday. That's because the country's main inflation gauges have shown few signs of retreating in recent weeks and are still running above the country's 4.5% inflation target.

http://blogs.ft.com/beyond-brics/2011/05/06/brazil-inflation-under-control-for-now/#axzz1WgUAF5HM

If there’s one thing a Brazilian central bank chief doesn’t want to see at the end of a long year, it is high inflation. By law, if inflation exceeds the official target of 4.5 per cent plus or minus 2 percentage points as of December 31, the central bank president has to swallow his pride and write an open letter explaining himself to the finance minister.

Perhaps Merv should just ask to use the Brazilian inflation target in his next letter to George?

Edited by interestrateripoff

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Did a job in Rio about 2002 came back with a 50 real note. Stayed in my currency stash for ages. Anyway, recently decided to reduce the currency stash and went to the airport booth with a number of notes, but the Brazil one was rejected, something muttered about unstable currency won't exchange blah blah etc etc.

Where can I get that baby changed to some real money and will I be able to buy a house with it ?

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those nuts in Brazil certainly should be raisen the rates and buying choco shares.

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Did a job in Rio about 2002 came back with a 50 real note. Stayed in my currency stash for ages. Anyway, recently decided to reduce the currency stash and went to the airport booth with a number of notes, but the Brazil one was rejected, something muttered about unstable currency won't exchange blah blah etc etc.

Where can I get that baby changed to some real money and will I be able to buy a house with it ?

Comedy gold

They must have meant relatively unstable to the pound. The only reason for that is the pound hasnt stopped falling against it for 10 years

Edited by Tamara De Lempicka

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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