real interest rates 1.98% a year, still high for international standards, are by far the lowest rates the country has had in the past three decades.
Central Bank cuts interest rates to new record low 7.5%
www1.folha.uol.com.br
GUSTAVO PATU
MAELI PRADO
FROM BRASÍLIA
MARIANA CARNEIRO
FROM SÃO PAULO
With the ninth consecutive decline in benchmark interest rates, Brazil's Central Bank has reduced them to 7.5% from 8%, an all-time low.
Twelve months ago, the Central Bank shocked investors and analysts when it interrupted a series of high rates by reducing them to 12% from 12.5% a year, although inflation was above the official goal.
Regardless of its continuity, the government's monetary stimulus strategy has already yielded outcomes to President Dilma Rousseff's economic team.
The government can present real inertest rates - discounted for forecasted inflation - of 1.98% a year, which, although still high for international standards, are by far the lowest rates the country has had in the past three decades.
Investors' and consumption's answer has been below and slower than expected. The market's central forecast today is an economic growth of only 1.73% a year, little more than half of the 3.5% forecasted by the Central Bank in March. |
