Brazil Takes Steps To Cool Economy

Posted by Gabriella Stern on February 24, 2010
Brazil, Central Banks, Economy

Brazil’s central bank, worried about inflation and other symptoms of an accelerating economy, has raised banking reserve requirements on term deposits to 15% from 13%. Granted, Brazil’s economy isn’t expanding at a China-esque pace. But like China, which has taken monetary tightening steps in recent weeks, Brazil wants to prevent a bubble. Henrique Meirelles, central bank president, notes that bank reserve requirements were reduced during the 2008 economic crisis; now stimulus measures need to be reined in. The central bank took some other steps today to restore charges on cash and term deposits. Final data aren’t out yet but it’s believed that Brazil’s economy didn’t grow at all last year; this year, it’s expected to expand a robust 5.5%. We should all have such problems.

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1 Comment to Brazil Takes Steps To Cool Economy

F Pait
February 24, 2010

Is it a bubble in China?

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