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Aggressive Rate Cut of Brazil Giving Positive Outlook to the Economy


January, 12 2017
watermark Economic news

The Central Bank of Brazil reduced its Selic rate benchmark abruptly in their attempt to boost the weak economy of the country as a result of the unanimous vote on Wednesday. It lowered by three-quarters of a point to thirteen percent instead of the forecasted four points. This has been the lowest rate cut since October last year.

According to the central bank, the inflation aligns with the target although the economic growth is still poor. Even though inflation has a slower pace of growth for more than two years, there is still a pile of debt and wavering confidence from businesses and consumers as consumer prices increase more that hamper progress in the economy.

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Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.