Brazilian central bank cuts interest rates
Date added: 28th July, 2009 at 10:48
(view all articles from July, 2009)
Categories: Economy, Property News
In what could be good news for people hoping to buy property in Brazil, the central bank has cut interest rates to a record low.
The organisation made the unanimous decision to cut rates by 0.5 per cent to 8.75 per cent, a rate that could mean cheaper mortgage rates for foreign investors.
It said in a statement that the cut will help the country to achieve "the inflation-free recovery of economic activity" amid the recession.
The 0.5 per cent reduction is the lowest Selic rate ever seen in Brazil and is the fifth such cut since the beginning of 2009.
It is thought that interest rates will remain at 8.75 per cent this year before rising again to reach an estimated 9.38 per cent by the end of 2010.
Earlier this month, Alessandro Teixeira, president of Brazil's Trade and Investment Promotion Agency, told the New York Times that people who buy land in Brazil may find it cheaper to build properties thanks to reduced taxes on construction materials.
He added that this will assist in the forthcoming real estate boom in the north east.
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