Brazilian property owners see interest rate cuts
Brazil’s central bank has cut its benchmark interest rate by 0.5 percentage points to a record low, which is good news for Brazilian property owners who have a mortgage in the country.
The country’s policymakers agreed to reduce the rate to 8.75 per cent this month, making the fifth cut in the past five months.
Paul Biszko, senior strategist at RBC Capital Markets in Toronto, told the Financial Times: "The central bank is taking the opportunity to anchor rates at historically low levels."
It follows many predictions on the country’s economic future this week, with the central bank estimating the economy would contract by 0.3 per cent this year.
However, officials have also forecast that Brazilian property owners will see the economy grow by 4.5 per cent next year.
The country is already seeing signs of emerging from the recession, thanks to tax breaks and increased government spending.
A United Nations report has also predicted this week that Brazilian property investors will see 3.5 per cent growth next year.
