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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (47395)	3/12/2009 1:01:15 PM
From: elmatador	Respond to of 220395

Because inflation is going to down further. Interest rates must go down in tandem. Brazil have never before had low interest rates. Plenty capital and low inflation. That has been always the prerrogative of the G-7.

To: Haim R. Branisteanu who wrote (47395)	3/12/2009 1:18:53 PM
From: elmatador	Read Replies (2) \| Respond to of 220395

Brazil’s Currency Strengthens on Central Bank’s Rate Cut, Loans The loans will be extended to exporters that have had difficulty raising funds since last September, the central bank said. “The central bank should keep doing these auctions that are clearly helping exporters,” Battistel said. Brazil’s Currency Strengthens on Central Bank’s Rate Cut, By Renato Andrade March 12 (Bloomberg) -- Brazil’s real rose after the central bank cut its lending rate by the most in five years and said it will offer loans to financial institutions in an effort to boost growth in Latin America’s biggest economy. The real strengthened 0.5 percent to 2.3283 per U.S. dollar at 11:44 a.m. New York time, from 2.3402 yesterday. The central bank is set to offer as much as $1 billion in loans in an auction. “The central bank’s auction may help the real,” said Mario Battistel, foreign exchange manager at Fair Corretora de Cambio, in an interview with Bloomberg Television in Sao Paulo. The loans will be extended to exporters that have had difficulty raising funds since last September, the central bank said. “The central bank should keep doing these auctions that are clearly helping exporters,” Battistel said. Policy makers, led by bank President Henrique Meirelles, cut the so-called Selic rate by 1.5 percentage points last night to 11.25 percent. Policy makers voted unanimously, signaling they are prepared to reduce borrowing costs to a record low when they meet in April. “An interest-rate cut in the current scenario means the biggest possibility for growth in Brazil,” said Miriam Tavares, foreign exchange director at Sao Paulo-based AGK Corretora. In January, when Brazil’s central bank lowered interest rates for the first time in 16 months, the real strengthened as much as 1 percent the day after the decision. The yield on Brazil’s zero-coupon, local-currency bonds due in January 2010 fell three basis points, or 0.03 percentage point, to 10.07 percent. The yield on the overnight futures contracts for July 2009, one of the most-actively traded on the BM&F commodity and futures exchange in Sao Paulo, dropped seven basis points to 10.50 percent. To contact the reporter on this story: Renato Andrade in Sao Paulo at = randrade11@bloomberg.net