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Brazil Central Bank Cuts Benchmark Rate From 9.75% To 9.00%

Tyler Durden's picture





 

The global reliquification continues:

  • BRAZIL CENTRAL BANK DECREASES BENCHMARK LENDING RATE TO 9.00%
  • BRAZIL CEN BANK SAYS RATE CUT PART OF CONTINUED ADJUSTMENT

First India, now Brazil (even if the move was largely expected). When are Russia and China joining the fray?

From the BCDB:

Monetary Policy Committee reduced the Selic rate to 9% per year

 

18/04/2012 20:06:00

 

Brasília - The Monetary Policy Committee considers that at present, remains limited risks to the inflation trajectory. The Committee further notes that, until now, given the fragility of the global economy, the external sector has been disinflationary.

 

Thus, in response to the process of adjusting monetary conditions, the Committee decided unanimously to reduce the Selic rate to 9.00% pa, without bias.

Brasilia, April 18, 2012

 


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Wed, 04/18/2012 - 19:18 | Link to Comment CClarity
CClarity's picture

Will it weaken the currency, as they hope, or is it a sign that "there are problems out there . . . and not just in the developed tired world"? 

Wed, 04/18/2012 - 19:38 | Link to Comment ACP
ACP's picture

Yes, because their benchmark is "only" 9% more than the Fed funds rate.

Wed, 04/18/2012 - 19:53 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

Race to the bottom continues. Brazil is way behind.  9%? Common, you can do better than that. 

Wed, 04/18/2012 - 22:08 | Link to Comment AldousHuxley
AldousHuxley's picture

9% - 7% inflation = 2% growth.

 

but government is printing to be able to afford nice soccer stadiums for the world cup in 2014 and olympics in 2016.....

 

Wed, 04/18/2012 - 22:22 | Link to Comment Bear
Bear's picture

I'll take it since 1.5% - 5% = -3.5% for us

Thu, 04/19/2012 - 03:47 | Link to Comment GernB
GernB's picture

You can offset that -3.5% by investing in the S&P which made a whopping -0.00318% last year so you get a grand total return of -3.50318%

Wed, 04/18/2012 - 23:34 | Link to Comment Seer
Seer's picture

And 2% means a COMPLETE doubling of Brazil's economy in 35 years.  How much you want to bet that this won't happen?  Really, WTF do they have that would double, that the rest of the world, as it continues to slide down into the pits of the corrective parabola, would be begging for (with no money)?

And don't get me started on sports arenas or the Olympics!

Thu, 04/19/2012 - 04:00 | Link to Comment Half_A_Billion_...
Half_A_Billion_Hollow_Points's picture

NO WAY Brazilian inflation in only 7%, gals.

 

Petrobras took a beating in the market because the BR goverment decided to use it as an anti-inflation tool.  They held gas prices down through the national gas corp.

 

Anyways, what kind of wtf place can be called Brasilia??  wtf?  It's like the name of the capital of Austria or some other stupidity, gals 

Wed, 04/18/2012 - 20:21 | Link to Comment phungus_mungus
phungus_mungus's picture

9%?

Pussies!!!

I say cut it to 0.25! 

 

Wed, 04/18/2012 - 19:27 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

and southAfrica?

Wed, 04/18/2012 - 19:59 | Link to Comment greensnacks
Thu, 04/19/2012 - 05:12 | Link to Comment johny2
johny2's picture

Exactly. The Currency war is heating up. The loosers are usual 90% of population, who are going to pay the bill.

Wed, 04/18/2012 - 19:30 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Same day Brazil eases.....Bank of England took a hawkish tone due to inflation fears.

It's a BI world. BIflationary, that is. 

Wed, 04/18/2012 - 19:30 | Link to Comment Debeachesand Je...
Debeachesand Jerseyshores's picture

"there are problems out there.... and not just in the developed tired world"?

IMHO,the Great Depression II is just around the proveribal corner.

Wed, 04/18/2012 - 19:30 | Link to Comment Debeachesand Je...
Debeachesand Jerseyshores's picture

"there are problems out there.... and not just in the developed tired world"?

IMHO,the Great Depression II is just around the proveribal corner.

Wed, 04/18/2012 - 21:51 | Link to Comment Dr. Engali
Dr. Engali's picture

Just around the corner? We've been in a depression since 2000, we just masked it over with debt.

Wed, 04/18/2012 - 23:36 | Link to Comment Seer
Seer's picture

Yes, but it hasn't been wheeled out to the showrooms yet.

Wed, 04/18/2012 - 19:34 | Link to Comment Rainman
Rainman's picture

This'll get Bill Gross' attention for sure.

Wed, 04/18/2012 - 20:51 | Link to Comment LongSoupLine
LongSoupLine's picture

 

 

yep, and the algos tomorrow morning as they choose to focus on this rather than the pending horrific Spanish bond fiasco.

Wed, 04/18/2012 - 19:34 | Link to Comment dannyboy
dannyboy's picture

This also coinsided with the closing of the Stolper trade unwind, GS frontrunning brazil CB too?

Wed, 04/18/2012 - 22:46 | Link to Comment LeBalance
LeBalance's picture

coin-sided (omfg!)  Freudian!  lol.

Wed, 04/18/2012 - 19:34 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Brasil better hurry up and buy some gold if they are going to devalue their currecie.

Wed, 04/18/2012 - 19:44 | Link to Comment greensnacks
greensnacks's picture

I hear Syria has some for sale.

Wed, 04/18/2012 - 19:47 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

No, that is Hillary's.  She isn't satisfied, even after she got Libya's.

Wed, 04/18/2012 - 21:48 | Link to Comment Dr. Engali
Dr. Engali's picture

Is there anything that can satisfy Hillary ? Anything ? She obviously couldn't satisfy Bill.

Wed, 04/18/2012 - 22:50 | Link to Comment LeBalance
LeBalance's picture

Garbage: The World Is Not Enough:

http://www.youtube.com/watch?v=jUwBhvU_ydI

Wed, 04/18/2012 - 23:37 | Link to Comment Seer
Seer's picture

And I never hear all those right-wingers trumpeting how they hate the bitch, now that she's waving the war flag (what a bunch of fucking hypocrites).

Wed, 04/18/2012 - 19:37 | Link to Comment chump666
chump666's picture

wow...and oil is still bid over 100.  Silly Brazil, you lot bought en masse sh*t loads of USD's when hyperinflation hit your shores in the early 90's.  But it's China, Vale Iron Ore demand collapse I guess is a freak out.

Australia will cut next.

Wed, 04/18/2012 - 19:48 | Link to Comment Pete15
Pete15's picture

Gotta love these currency wars. Sadly Gold stocks keep going down the drain, NEM has been ass raping me along with ASA. Still got the physical but I want to have the Ron Paul type protfolio. http://www.informationliberation.com/?id=36289 Everthing Ive researched makes me confident in the long run Gold stocks will perform but its only my second year investing and these gold stocks are killing me. Im not going to sell at the lows to pick up more pysical but Im feeling really stupid today not getting more physical. 

Wed, 04/18/2012 - 19:50 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

You are DCA'ing right?  If you like miners, which I do, then you should keep buying them.

Wed, 04/18/2012 - 20:03 | Link to Comment Pete15
Pete15's picture

I do like them and I also own SVM and IPOAF but all of them minus IPOAF has sucked. All Im saying is that its frustrating, if I can be a monday morning quaterback for a minute I could have bought more physical and more high dividend paying stocks. Lets just say my timing has sucked. I dont know how you guys can trade and be so confident everyday its impressive. I believe with all my heart that my inflation bets will pay off big one day but for the past two years my performance hasnt been where Id like it to be. Seeing more red than green never makes anyone comfortable. You guys were smart enough to start your gold buying years and years ago when I was still in grade school. Yet again the research tells me to hold on but I always fear being wrong. 

Thu, 04/19/2012 - 01:23 | Link to Comment Pete15
Pete15's picture

Awesome thanks a ton, Im calling my broker tomorrow!

Thu, 04/19/2012 - 00:45 | Link to Comment walküre
walküre's picture

Tough tough tough. Most miners are on a downward spiral since 2011 and haven't come back. There are some real good ones, real cheap. Semafo Inc. produces 61,000 oz Au last quarter with cash margins of $900 to $1000 per oz. Stock is trading at under $5 bucks in Toronto. Almost seems like the rally in miners is done. Nobody wants to touch anything right now.

Thu, 04/19/2012 - 01:24 | Link to Comment Pete15
Pete15's picture

I really appreciate the recomendation, Ill be checking it out. Im also interested in GORO since you can get dividends in gold and silver now. 

Wed, 04/18/2012 - 19:53 | Link to Comment StockHut
StockHut's picture

GIVE ME FIAT OR GIVE ME DEATH

Wed, 04/18/2012 - 19:59 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

You get both. 

Wed, 04/18/2012 - 23:40 | Link to Comment Seer
Seer's picture

And a free FLAG! (one that your children will have to pay for)

Wed, 04/18/2012 - 19:58 | Link to Comment chump666
chump666's picture

China appreant going to cut RRR sent AUD bid (HFTs mania).  I think it's jaw boning, those crazy Chinese sent oil bid against their wide YUAN band and 99% of Chinese companies dump Yuan and buy USDs.  A  total mess. 

China is a doomsday engine.

 

Wed, 04/18/2012 - 20:13 | Link to Comment chump666
chump666's picture

Dumb asses

* Xinhua report saying China will ease "at appropriate time" not a surprise * The AUD/USD spiked to 1.0388 on the headline but has now eased below 1.0370 * The AUD/USD underpinned by AUD/JPY out of Tokyo

 

Wed, 04/18/2012 - 20:08 | Link to Comment Bunga Bunga
Bunga Bunga's picture

That Brasilian butt going down hard.

Wed, 04/18/2012 - 20:43 | Link to Comment Global Hunter
Global Hunter's picture

Is anybody taken aback by a country cutting to 9%?  I mean 9% is soooooo 80s, if these guineas wish to get into the big boys club they need to start talking negative interest rates or at least cuts to 1.5 or 2%.  Get with the program guys!

Wed, 04/18/2012 - 20:57 | Link to Comment Platinum_Investor
Platinum_Investor's picture

If India or Brazil raised rates the thieves would use that as an excuse to RAID Gold just because.

But cuts.  Well lets send gold down as well.

Tough fighting this manipulation.

Wed, 04/18/2012 - 21:04 | Link to Comment navy62802
navy62802's picture

Well, at least Brazil's central bank actually charges interest.

Wed, 04/18/2012 - 21:44 | Link to Comment Dr. Engali
Dr. Engali's picture

Central banks of the world unite.

Wed, 04/18/2012 - 22:19 | Link to Comment Bear
Bear's picture

 

 

New Verb: to zirp - to irrationally reduce your sovereign currency to zero

I zirp

You zirp

We zirp

They zirp

Wed, 04/18/2012 - 23:20 | Link to Comment NotApplicable
NotApplicable's picture

Sad thing is, it's actually very rational, if you happen to benefit from it.

Wed, 04/18/2012 - 23:20 | Link to Comment pleseus
pleseus's picture

Gold and Silver are on sale. Buy low sell high.. The global Print fest winds back up. Deflation was so 2011. Inflation will be the theme at the end 2012.

Thu, 04/19/2012 - 00:43 | Link to Comment Non Passaran
Non Passaran's picture

I agree. According to my inexperience, this is quet before a major inflatory storm.

Thu, 04/19/2012 - 04:31 | Link to Comment Nussi34
Nussi34's picture

Sell to get what? Paper?

Wed, 04/18/2012 - 23:45 | Link to Comment Seer
Seer's picture
Bank of Japan says committed to powerful easing

http://news.yahoo.com/bank-japan-says-committed-powerful-easing-02073254...

When viewed in the larger picture it's clear that no one believes that fiat is any longer worth anything.  I almost believed the arguments that holding cash would be good in the near-term...

Thu, 04/19/2012 - 00:49 | Link to Comment walküre
walküre's picture

POWERFUL EASING!

Is that like a squadron of Jap fighters dropping vast amounts of cash before crashing into Fukushima "Harakiri" style?

Has Helicopter Ben found his match? Masaki! Powerful Easing! Sake! Hi! Domo! Harakiri!

 

Wed, 04/18/2012 - 23:49 | Link to Comment Seer
Seer's picture

First was the "bailout," now comes "throw all the shit overboard!"  Anyone get a sinking feeling?

Thu, 04/19/2012 - 00:34 | Link to Comment jonjon831983
jonjon831983's picture

They've been trying to keep their currency low long time.

Brazil launches fresh currency controls - Jan 2011

http://www.ft.com/intl/cms/s/0/f53b66e4-1983-11e0-a853-00144feab49a.html#axzz1sSQfIJbS

 

Thu, 04/19/2012 - 02:13 | Link to Comment Ted Baker
Ted Baker's picture

ON THE WIRES -> CHINA IS LECTURING THE BRICS COUNTRIES HOW TO DO BUSINESS AND FIGHT THE WEST AND US.....THEY WANT MORE POWER AND CONTROL OF THE WORLS....MARKETS TO RUTTLE AND HUM.........FASTEN YOUR SEAT BELTS...SP500 DOWN TO 800 AND DOW DOWN TO 9,000.....CURRENCY WARS TO CONTINUE

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