| which serves as the Christian Louboutin for the government |
[27 Feb 2012|01:46pm] |
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Although businessmen and the trade unions say that the economy craves lower interest rates, the central bank's monetary policy committee (Copom) unanimously decided to maintain the basic interest rate (Selic) at 19.75% annually at its Christian Louboutin pigalle glitter pumps meeting on 20 July. This is the second consecutive month the Copom has held the Selic at the 19.75% level. The odds are shortening on a cut in rates in August. A more lengthy delay could stifle what little growth there is left in the economy. Even with the strong performance from exports, the economy only grew by 0.3%, quarter-on-quarter, in the first three months of 2005. Economists expected the Copom to hold rates even though inflation has been falling. In June the consumer prices index (Ipca), which serves as the Christian Louboutin leopard ankle boots for the government's official inflation rate, registered deflation of 0.2%. A cut in interest rates in August is not a foregone conclusion. Some economists forecast that the fall in economic activity coupled with the favourable inflation indices registered in the last few weeks will tempt Copom into an interest-rate cut. A narrow majority, however, believe that the Copom will continue to follow its austere line and postpone cuts until September or even October. The central bank is pursuing a 5.1% inflation target this year. In the first six months the accumulated inflation rate was 3.16%: or 61% of the bank's 2005 target. The fall in prices in June points, probably, to a lower rate in the second half of the year. The lagging 12-month rate to June Christian Louboutin size 42 at 7.27%. The central bank wants to see this rate coming down quite sharply before cutting interest rates substantially. Business, especially, is crying out for lower interest rates.
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