Thursday, January 20, 2011

Bring us your money!


The Brazilian Central Bank raised the interest rate by 0.5% to 11.25% in yesterday's meeting. This puts the government in a difficult situation: They raised inflow taxes, then they twisted December numbers to make borrowing more expensive without raising interest, but now had to do someting.

Brazil continues with the highest real interest rate in the world, at 5.5%. Second place is... Australia, with a mere 1.9%.

And the analyst buzz is that interest rates will continue climbing, peaking around 12.25% at year end. I smell inflation:

For Portuguese-Readers:

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