La Central Bank of Brazil cut interest rates for the ninth consecutive time. The reduction is half a point and brings the Selic reference rate to 7,5%. This is the lowest level ever. The Institute continues to lower the cost of money in an attempt to stimulate the economy, which is feeling the effects of the slowdowns in China and the United States.
In the first semester the GDP of the country has increased less than expected and Brasilia has had to revise its growth estimates for 2012 downwards from 4,5% to 2,5%, while the British weekly "The Economist" considers growth of 2% "optimistic". L'Industrial activity it is slowing down and the PMI manufacturing index in July remained below the threshold of 50 points, which marks the boundary between expansion and contraction.
Il part it fluctuates around two dollars, down by more than 15% since the beginning of the year against the US currency. The main index of the São Paulo Stock Exchange, the Bovespa, continues to do relatively well: in one year it has gained 3,58%.
