Brazilian economy crisis has been ‘overcome’
The Brazilian economy is "recovering faster than the developed, industrialised nations", according to an expert.
Chief economist at brokerage Gradual Corretora, Pedro Paulo Silveira, made the comments, which will interest people who own Brazilian property, as the country’s central bank announced that it will leave borrowing costs at record lows for the rest of the year.
Mr Silveira also claimed that the South Americans will start next year with an economy ready to expand at a rate of 4.5 to five per cent.
The bank decided to keep interest rates at 8.75 per cent yesterday (September 2nd) which remains consistent with a "benign" inflationary outlook, according to a statement by president Henrique Meirelles.
Silvio Campos Neto, chief economist of Banco Schahin SA, told Bloomberg that rates could stay the same for the next year and a half.
"The statement was clear," he said. "The bank signalled it entered in a wait-and-see stance to test the reaction of the economy to this unheard-of level of rates."
Brazil’s recent budget plans for 2010 estimated that there will be a 12 per cent increase in primary spending with social security, education and poverty set to benefit.
