Could steady inflation increase investment in Brazil?
Date added: 23rd June, 2010 at 09:18
(view all articles from June, 2010)
Categories: Economy
Following a report by Fund Strategy that an era of economic stability has boosted foreign investment in Brazil, the country has announced that it is retaining its inflation target for another year, according to the Wall Street Journal.
The government's consumer prices goal has now remained at 4.5 per cent for eight years in a row after the nation's expansion was successfully slowed by more than 12 per cent between 2003 and 2009, to reach 4.31 per cent last year.
This comes at a time when the country's economy is growing rapidly and the government is being careful not to put too much pressure on the central bank, chief economist at Banco Schahin Silvio Campos Neto told the news provider.
"We kept the target at 4.5 per cent for another year because that target has been working well for us," finance minister Guido Mantega stated.
Meanwhile, Brazil's National Monetary Council has announced that it is holding the TJLP long-term interest rate - used for business loans - at six per cent.
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