Arab Today, arab today brazil to keep key interest rate at 1425
Last Updated : GMT 11:53:50
Arab Today, arab today
Arab Today, arab today

Brazil to keep key interest rate at 14.25%

Arab Today, arab today

Arab Today, arab today Brazil to keep key interest rate at 14.25%

Brazil's central bank
Brasília - AFP

Brazil's central bank is expected to maintain its key interest rate at 14.25 percent this Wednesday after seven consecutive hikes aimed at holding back soaring inflation.

A weekly Central Bank survey of 100 economists on Tuesday said that further raising the rate would not help Brazil's steep economic slowdown.

The world's seventh biggest economy is in a recession predicted to extend through 2016 and previous rate rises have not prevented a steady rise in inflation to the current 12-year high of 9.56 percent.

The 14.25 percent interest rate is already one of the highest in big economies.

"The word crisis crops up on all sides. It's not monetary policy that's going to protect the country... and quickly reduce inflation," said Zeina Latif, chief economist at XP Investimentos.

"The Central Bank has been very clear on this question: what's happening is a prolonged pause and that's why there's no reason to think there'll be a raise in rates now," she said.

Analysts believe the high interest rate will gradually bring down price rises, but that a new hike could be risky.

The real has lost more than a quarter of its value against the US dollar this year and there are fears for Brazil's investment grade credit rating after the government on Monday presented a 2016 budget that for the first time projects operating in the red.

In addition to the macroeconomic troubles, Brazil is being shaken by a political crisis with President Dilma Rousseff facing calls for her impeachment.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today brazil to keep key interest rate at 1425 Arab Today, arab today brazil to keep key interest rate at 1425

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today brazil to keep key interest rate at 1425 Arab Today, arab today brazil to keep key interest rate at 1425

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today How to do your own Ramadan corner?

GMT 15:53 2017 Saturday ,27 May

How to do your own Ramadan corner?
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday