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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 (53901)8/22/2009 2:32:09 PM
From: elmatador  Read Replies (1) | Respond to of 220161
 
A big component of the inflation was imported due to bubble. Bubble burst, need to control interbal inflation, i.e., demand inflation.

Before increasing interest rates CB can increase the reserves required by banks to keep with it (those were relaxed Oct last year <<Brazil's central bank will inject up to 100 billion reais (46 billion U.S. dollars) into the country's financial system by readjusting the bank reserve requirements policy, announced the bank Monday.>> and let more money flow into the economy during the pause for breath(I don't call recession :-)

CB views:

bloomberg.com