Wednesday, October 19, 2005

 

Central Bank cuts interest rate

The Central Bank of Brazil cut today the basic interest rate in fifty basis points, to 19.00 % per annum.
Projected inflation for the next twelve months is between 3 and 6%. Brazilian real interest rate is still, by far, the highest in the world.
Because of this high rate, the influx of hot money is high, and the real grows stronger and stronger against the dollar. This week, the Real course is around R$ 2,30 per dollar.



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