Brazil may atract investments after the global finance crisis
Brazil is ok, I´m ok and you are ok - that´s more or less what some people in Europe heared from president Lula da Silva today or yesterday, don´t know for sure why.
The story is about the trend in short terms for basic interest rates reduction in Brazilian economy - Lula didn´t showed any interest in stopping his own plans with a bit of basic economics.
-People is willing, mister, to invest in Brazil, you know? Alcohol, yeaj, ethanol and all that.
Inflation acceleration:
-Oh no, forget it , if what you want is to keep on making money on me, man, forget about it…
-?
Stock markets in Sao Paulo closed today in good shape, following this other story wiring all over, about the very true futurology by the Federal Reserve´s decision already taken: to reduce basic interest rates by some 0,25 pp next Thursday (18).
Lula wants to keep on going. His plans before global finance crisis are to be taken seriously, about promoting domestic economic growth in order to answer the main national problem here - create jobs for millions.
Next Tuesday (18) there will be another meeting at Brazilian Central Banco´s committee on monetary policy, probably to annouce a cutting by 0,25 pp instead of 0,5 pp on basic interest rates.
Here, like there.
Diference is that United States faces the challenge of recesion next year and Brazil is on the good part of the curve, with his alcohol driven million of cars and now the ethanol run - basides strong economic fundamentals that could help to atract direct investments.
But in order to atract foreing capital that Brazil needs the “invest grade” by JP Morgan - so get it, just with low interest rates.
