Thursday, June 16, 2005


Interest Rate: no changes

On the Wednesday, the Central Bank of Brazil maintained the basic interest rates at 19.75% p.a.
The board of Central Bank meet every month to deffine the interest rates. It was the first time in nine months that there was not a increase in rates.
It has been also the first time in several months that analysts forecast a downturn in future inflation; currently, the estimatives for inflation are around 6.3% for 2005, slightly above the inflation target of 5.5%.

The real interest rate of Brazil is still by far the highest in the world. With a nominal rate of 19.75%, and inflation of around 7%, the real interest rate in Brazil is around 12%.

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