Up, up and away: Brazil’s interest

 From an Economist newsletter:
  
 After increasing Brazil’s benchmark interest rate for the first time in six years in March, the central bank is expected to boost it again today, this time to 3.5%. By June, it is expected to be pushed to 4.25%. The situation in the county is dire, as it slogs through a calamitous recession and a second wave of covid-19 infections. It has the second-highest number of coronavirus deaths in the world. Loan defaults and unemployment are rising as repayment pauses end and emergency aid is slashed. Inflation, in turn, has shot past its predicted level for 2021. Analysts expect it will reach 5.04% by the end of the year, well over the government’s goal of 3.75% and last month’s forecast of 4.81%. Swelling food, fuel and energy prices continue to widen Brazil’s inequality gap. As prices soar, Brazil’s descent continues. 
 

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