Paulo Travisani – The Wall Street Journal, 7/26/2015
Brazil’s version of the Federal Reserve will almost certainly raise its benchmark Selic interest rate next week for the 16th time in just over two years in a bid to fight escalating inflation.
Trouble is, prices aren’t cooperating. Brazil’s annual inflation rate recently hit 9.25%. That is more than double the official 4.5% target and up substantially from 6.5% in April 2013, when the bank started raising rates.
That double-whammy of high rates and inflation are weighing on Latin America’s largest economy, which is contracting this year.