Brazil cuts interest rates

Brazil's central bank has cut interest rates by one per centage point which may be good news for Brazilian property investors...

Interest rates now stand at 12.75 per cent after central bank made its biggest cut in five years, exceeded the expectations of economists, who predicted a 75 basis point cut.

"The rate cuts will have an impact on demand and help revive business and consumer confidence," Eduardo Yuki, Chief Economist at BNP Paribas Asset Management in Brazil, told Bloomberg.

It is the latest in a series of measures by the Government to shore up the country's economy and prevent Brazil from suffering the effects of the global financial crisis.

Recently, Andre Loes, Chief Economist at HSBC Brazil, told the Washington Post that the country is well-placed to survive the recession as it has improved its economy since the 1990s when it had a weak balance of payments.

He added that new fiscal expenditure laws would also help the country.

Source: www.uv10.com