Interest rate rise: Fed move threatens to extend Brazil’s woes

John Paul Rathbone – Financial Times, 9/8/2015

The president may be impeached as part of a corruption scandal, the economy is in recession, unemployment is rising, the currency has collapsed and local interest rates have been jacked up to quash inflation. The last thing that Brazil needs is higher US interest rates as well — even if most Brazilians have more pressing domestic concerns on their mind.

“It’s crazy. Brazil is back to the past again. It’s broken. We can’t even think about getting into overdraft,” said Raul Shinohara, a 61-year-old engineer, lamenting that his credit card charges an annual rate of 372 per cent.

“I hope things get better because if they don’t, it is going to get complicated,” added Maria Lucia Santos, a 58-year-old state sector employee, as she window-shopped in São Paulo.

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