Central Bank Economic

I spoke about the disadvantages for those who are going through the Brazilian economy, with a sharp drop in activity level, a leap in the level of not less unemployment and bleak prospects for the external sector. a The deteriorating economic outlook in Brazil have affected the investment plans of businesses through deeper economic slowdown. According to realize the Argentine site The Chronicle, because of global financial instability, more than 30 Brazilian and foreign companies suspended or postponed their investments in that country, for a total of $ 28. 000 million. That is, the suspension of investment plans do not respond to problems in the Brazilian economy but the global economic problems pointed to where such investments.

a The situation remains alert to the Brazilian government in order to offset the negative impact of reduced plans investment, lower consumption and lower external demand is studying the possibility of launching new programs to stimulate key sectors such as construction, agribusiness and the automotive industry. Moreover, since the Brazilian government is considering increasing funding for enterprises in steel and infrastructure. a From the side of monetary policy, which becomes important at this moment of crisis for its ability to stimulate domestic demand, today we know the decision of the Monetary Policy Committee of Central Bank of Brazil on its interest rate reference. Since the market has already anticipated a cut of at least 50 basis points. For the market, monetary policy will be less rigid during this year than expected at the beginning of it.