Open

Coming up

Don't miss

Replay


LATEST SHOWS

IN THE PAPERS

Shifts in the propaganda war waged between Israelis and Palestinians

Read more

IN THE PAPERS

French MPs face quandary in pro-Palestinian rallies

Read more

THE INTERVIEW

Yezid Sayigh, Senior Associate at the Carnegie Middle East Center in Beirut

Read more

#TECH 24

Mind the Gender Gap : getting more women into the tech sector

Read more

INSIDE THE AMERICAS

Bolivian children: heading to work aged 10

Read more

WEB NEWS

Israel and Hamas battle online over public opinion

Read more

FOCUS

Can Chancellor Merkel's winning streak last?

Read more

FOCUS

Hunger in a fertile land...

Read more

DEBATE

Nigeria: One Hundred Days and Counting (part 2)

Read more

  • Live: Algerian jet with 116 on board 'crashes' in northern Mali

    Read more

  • ‘Many’ French passengers on board missing Algerian plane

    Read more

  • Iraqi parliament elects moderate Kurd as president

    Read more

  • Sudanese Christian woman sentenced to death arrives in Italy

    Read more

  • No end to fighting until Israel ends Gaza blockade, Hamas says

    Read more

  • Two foreign women shot dead in western Afghanistan

    Read more

  • At least 60 killed in attack on prison convoy near Baghdad

    Read more

  • Cycling is ‘winning the war on doping,’ says expert

    Read more

  • Ceasefire agreed for Central African Republic

    Read more

  • Can Jew-kissing-Arab selfie give peace a viral chance?

    Read more

  • In pictures: Thousands march for Gaza peace in Paris

    Read more

  • France charges Swiss bank UBS with tax fraud

    Read more

  • Israel faces heightened diplomatic pressure as Gaza violence rages

    Read more

  • Botched Arizona execution takes nearly two hours

    Read more

  • Bomb attacks leave scores dead in north Nigeria

    Read more

Business

Brazilian central bank cuts its key rate

Latest update : 2009-03-12

Brazil's central bank cut its key rate by 1.5 percentage points to 11.25 percent on Wednesday. The cut was bigger than the 1.0-percentage-point reduction many economists had been predicting.

AFP - Brazil's central bank on Wednesday cut its key rate by a larger-than-expected 1.5 percentage points to 11.25 percent.

The move followed official data which showed Brazil's economic growth had slowed dramatically under the global crisis, and industrial output was stalling.

The cut was bigger than the 1.0-percentage-point reduction many economists had been predicting, though several had so said they would not be surprised to see a more sizeable snip given the accumulating economic problems.

The government's Brazilian Institute of Geography and Statistics on Tuesday released data showing that gross domestic product fell a staggering 3.6 percent in the last quarter of 2008.

That put an end to a long run of high growth and reduced 2008's total GDP expansion to 5.1 percent.

There are fears that Brazilian growth is currently close to zero and may grow only tepidly later this year. Economists forecast 2009 growth will be just 1.3 percent.

The central bank's cut was the second since the global crisis exploded onto the scene last September. In January this year the bank slashed one percentage point off its reference Selic rate to 12.75 percent.

Wednesday's cut indicated that the bank was now putting its priority on stimulating Brazil's economy, shifting attention from its traditional wariness over inflation.

Despite the crisis, inflation continues to creep up in Brazil, and is currently running at 5.9 percent -- at the high end of the central bank's target range of 4.5 to 6.5 percent.
 

Date created : 2009-03-12

COMMENT(S)