30 Aug 2012
New record low interest rate in Brazil
Thereby, the Selic interest rate has been lowered by 5 %-points within just a year
The Brazilian Central Bank (BCB) lowered on Wednesday the 29th of August the leading Selic interest rate to a new historic low of 7.5% pa. A reasonable level of inflation around 5% a year and the need for monetary stimulus has meant that the Selic rate over the past year is lowered by as much as 5%-points.
Selic interest rate 2005-2012
Retail sales doing well
Meanwhile, the economy started to show signs of a budding recovery and, in particular, the retail sales growth expanded surprisingly well in July.
Also, the government recently announced a gigantic infrastructure package to invest 133 billion BRL in new roads and train routes.