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Less Than Two Months After Its First Rate Cut, Brazil Once Again Lowers Key Interest Rate 50 Bps To 11.50%
The world may not be re-entering a recession (after all just look at the S&P in the past two weeks - reputable economists will tell you there is no way the market can soar like that if the world was entering a double dip - and everyone would believe them because they have a Ph.D.), and America may be decoupling from everyone all over again just like every other time it was supposed to decouple but didn't, however Brazil is not waiting around to see the result. Less than two months after its first rate cut, the Brazil central bank just cut its main "selic" interest rate by another 50 bps, this time citing a "more restrictive global environment" instead of "substantial economic deterioration." At the end of the day, the result is the same. So will China finally follow suit and join the global loosening game?
Full release:
Brasília - Continuing the process of adjusting monetary conditions, the Committee decided unanimously to reduce the Selic rate to 11.50% pa, without bias. The Monetary Policy Committee believes that the timely mitigate the effects coming from a more restrictive global environment, a moderate adjustment in the level of the base rate is consistent with the scenario of convergence of inflation to the target in 2012.
Brasilia, October 19, 2011
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It's the Currency Wars, race to the bottom!
And here in India, we've probably got the most hawkish of all Central Bank heads, Our governor is expected to raise rates again by 25 bps in the upcoming policy meeting, seems like he is the antithesis of Ben Bernanke. Our governor loathes Inflation. the Reserve bank of India governor thinks Inflation is the biggest enemy of the country. He should learn from The Bernank!!!
You are preparing to be invaded, right? You might want to go grab those L1A1s from the police station. Just sayin'
And Who might be ready to Invade India, moron? your mixbreed president is preparing to Invade Uganda, or maybe Pakistan. India he cant even dream of touching with all your 50000 nukes
Yep. If we invade Pakistan, India is a stretch. Y'all a bunch of muslims, right? I see some towels on your heads and that's all I need to know.
Anyone else READY FOR SOME FOOTBALL?
Also, had some interesting discusions with an H1-B from India recently. He mentioned that people in his neighborhood had been robbed at the gas station. I believe the they said "we know you people have gold. Let's go back to your house." Just sayin'
This is the right decision for the sake of fairness and equal opportunity. Low interest rates are a human right that should be enjoyed by all people across the globe, not just Americans. To say that Brazilians don't deserve low interest rates is just obvious racism.
I will see your racism and up my bid by one obama birth certificate coffee mug.
Low interest rates harm savers and reward high leverage speculators. What you are saying is nonsense.
+1.I think you must taking to a derivatives trader
Oooooo! (Racial.)
India = corrupt bizzaro Keynesian/socialist system, with a spread between poor (extreme) to rich which is eye bleeding. No, your threat is China, via the Vietnam trade/oil agreements.
I wouldn't buy Indian/China stocks or anything.
+1
@ Ratshit_Bastard, Sorry if I didn't spell your name right.
If you want your Central Bank to emulate "The Bernank",
you must really hate your country.
So along with your greek 1 year bond prices, your sense of humor too seems to be racing towards the abyss, it was pure sarcasm pal, we indians adore our RBI governor, our government sucks but at least some institutions like the central bank are patriots
Sorry for offending you, Zorba has had a few too many rum drinks
I long for the days when our government was run by patriots.
+1 for the RBA!
If only the 1997 reweight of the CPI didn't take out mortgage interest, we wouldn't have a housing bubble about to collapse.
The problem with playing Limbo and "how low can you go?" is that there is a floor. No where to go once you reach it.
Chief say "Screw it! Time to buy something tangible like a lake home and fish for food."
www.blackpineslakehome.com
I am The Chief!
Buy Brasillia!
...and VALE.
Pretty Please! With sugar on top!
/jk
Don't forget to sell all your gold immediately. All of this QE and monetary easing is definitely negative for hard assets.
i got apartments, should i sell them too?
I offloaded my property portfolio in 2007/8. I would definitely recommend selling anything that relies on the widespread availability of affordable credit for its value.
PS There was an element of sarcasm in my post above referring to gold. :-)
recommend selling anything that relies on the widespread availability of affordable credit
Right, since the "great" lending machine is broke:
http://research.stlouisfed.org/fred2/data/REALLN_Max_630_378.png
http://research.stlouisfed.org/fred2/graph/fredgraph.png?&id=REALLN&scal...
Two weeks = two eons in HFT time.
O/T
The debt 'SuperCommitas' is deadlocked over what the meaning of 'is' is.
At least Brazil has plenty of room to cut rates to help bolster the sinking
economy. The U.S. can only stand idly by and hope for the best.
There will be no recession in the US of A. El Presidente Obama Hussein Obamanoid will not tolerate it. You must conform or get a spanking (or an enema if you prefer).
maybe gold and silver don't suck after all.
Black helicopters will show up if you keep talking about real money...
Brasil is in the enviable position of worrying about too much growth.
They have everything the other brics lack in one area or another.
With debt at 60% of gdp and most houses bought and sold for cash thete is plenty of room to grow.
Brazils growth is real, has strong internal demand, huge natural resources. They dont have to build ghost cities to keep people employed.
Buy EWZ. Hold it forever. Dollar cost average.
Growth is over in the developed world.
2) china
3) usa
they all seem to have inflation licked
glad that's over, aren't you?
China.
and if India crashes, Pakistian implodes, China gets frisky with India = that's a war right there.
Why do all of the pictures of Steve Wynn look like a bad photoshop job with an oversized head?
I am betting a skirmish between India/China within 6mths of 2012
http://www.firstpost.com/world/china-india-tensions-now-spill-over-into-...
Also I don't think some of you know that Brazil is burning up financially. They have made plans because of optimistic projections and have been conned into doing the same thing the US has been doing. They are also known for using the state checkbook to get votes. It happens so much that in Brazil so many people are on the federal dole one form or the other. They are going to implode also.
Interest rate 11.5 %
Inflation ( cpi) 6.6 %
The interest rates in Brazil are still far too high, but the brazilians are rightly worried about too much growth if they were to lower interest rates.
Compare with USA
Interest rates 0-0.25 %
inflation ( cpi ) 3.9 %