Jonathan Wheatley-Financial Times, 12/11/2008
Brazil’s usually conservative monetary policy committee was expected to hold interest rates steady last night as a sharper-than-expected economic slowdown outweighed inflation fears. Price rises are well above the central bank target of 4.5 per cent and approaching a target range ceiling of 6.5 per cent. In inflationconscious Brazil, which suffered hyperinflation as recently as 1993 and where many contracts are tied to inflation indices, this is cause for alarm.
The benchmark Selic interest rate rose from 11.25 per cent to 13.75 per cent between April and September as the central bank struggled to head off rises in consumer prices.
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Filed under: Nation, Politics and Government, Trade, Economy and Development | Tagged: brazil central bank, brazil economy, financial crisis
