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Brazil Property News: Brazil's industrial output increases
5th October 2007 02:49
Brazil's industrial output increased more than was expected in August, it has emerged.
The industrial output in Latin America's largest economy jumped by 1.3 per cent in August from July, after accounting for seasonal factors.
Senior analyst for Espirito Santo Investment, Fabio Knijnik, said that following the news he expects Brazil's central bank to keep the benchmark interest rate of 11.25 per cent unchanged in its meeting on October 16th.
The decision would follow 18 straight cuts of interest rates by the bank.
"Higher equipment will help increase industrial capacity in the long term, but… the [central] bank may [still] take a more cautious position in its next meeting," Mr Knijnik told Bloomberg.
Analysts commented that higher output signals a rise in domestic demand and signals growth in the Brazilian economy.
Brazil's strengthening economy has encouraged many property investors to buy real estate in the Latin American company.
The Brazilian government's property legislation was praised this week by an independent property analyst for being "sophisticated and well developed".
The laws were also championed for protecting the property owner whether they are a foreign or local owner.
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