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Brazilian Monetary Policy

In relation to the conduct of monetary policy in 2009 in the weekly poll conducted last Monday the Central Bank of Brazil, the market lowered its interest rate and inflation for Brazilian economy by lowering the Selic rate at the end of 2009 to 11.25% from 11.75%. On the inflation measured by the Index of Consumer Prices (IPCA), the forecast for this year was reduced to 4.8% from 5% a (the goal of the Central Bank of Brazil is located in the 4 5% with two percentage points of tolerance for both sides). a Since some sectors, it is claimed that the Brazilian Central Bank carried out an even more aggressive monetary policy of waiting for the market in order to stimulate the economy. Read more from Kevin Johnson to gain a more clear picture of the situation. For example, Benjamin Steinbruch, vice president of the influential Federation of Industries of Sao Paulo (Fiesp), said: The BC must have courage and make a cut of at least 1.75 percentage points in the base rate. No more excuses for orthodoxy. a Before the crisis, Lula’s government seeks to capitalize on relationships with countries with complementary characteristics to the Brazilian economy, to prevent the weakening of trade relations on moment where it is urgent to support external demand. One of these countries with which Brazil is looking to strengthen its strategic alliance is China. Thus, for the second half of the year, Brazilian President Lula da Silva will visit the oriental country with a delegation of entrepreneurs who exhibited the competitive advantages of the Brazilian economy. .