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Brazil's Monetary Policy Committee (Copom) decided, unanimously, for the third straight month, to maintain the country's annualized benchmark interest rate at 19.75%.
In the most recent official acts of the Committee, made public on July 26, the Copom signaled that the Selic would be held at this level for a "sufficiently long period" to ensure the inflation target for 2005, already raised from 4.5% to 5.1%.
Inflationary pressures have already led the Copom to increase the Selic rate between September, 2004 and May of this year. During this period the Selic was raised from 16% to 19.75%.
"Avoiding the possibility of a future acceleration of inflation is crucial for the process of the resumption of economic activity begun in 2003 to continue in a healthy and balanced manner," the Copom reported in its acts of September, 2004.
The process of raising the interest rate ended in June, reflecting the deflation that occurred in that month. Since then the rate has been kept at the level of 19.75%, with expectations that it will be reduced.
The definition of the benchmark interest rate takes into account factors such as the inflation forecast for the next 30 days and momentary price trends (upwards or downwards) in the economy.
Agência Brasil
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Are you lying not only to us...but also to yourselves ????
And for your information two thirds of your subsidized loans go to agribusiness !!!! So you can not even give the excuse it goes only to poors farmers...because even for the farmers part...some go to large farmers.
Which means...you have a subsizided rate..that the world just envy to have....because between 8.75 % and whatever percentage between 50 and 150 %....makes a big difference.....in production costs !!!!
Despite these rates.....farmers..went to Brasilila..2 months ago..pretending they cannot repay loans and asked for help, extensions. Extensions renewed since 1996 !!!
Strange ? No ?
After your last 2 booming years...due to prices and your previous currency collapse.....it should have been easy...to reimburse. A few farmers renewed their machinery....paying in cash...proving it was a golden time. So what did the majority of the others...those still unable to repay ????