In order to spur growth in Brazil’s economy, the Central Bank has slashed interest rates yet again. The bank’s monetary policy committee, known as the Copom, voted unanimously to cut the so-called Selic rate to 8.75%, says Fernando Exman for Reuters. Now the country will wait and see how the economy will react to the cuts.
Stephanie Hanson for Council on Foreign Relations reports that analysts agree that the country has the potential to produce many agricultural exports, as no other country has as many untapped resources and vast open land. Other positives seen:
- Sound economic management has reduced inflation and attracted foreign investment
- A stable currency, the Brazilian real
- Its population of 200 million is becoming a strong consumer market
- There’s tight regulation on banks
- Brazil’s banks are working to solidify the economy to make it less sensitive to market fluctuations, both globally and locally
- iShares MSCI Brazil Index (EWZ): up 63.9% year-to-date
For more stories about Brazil, visit our Brazil category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.