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Top Brazilian officials privately cut their forecast for 2012 economic growth to 3%, inline with...

Top Brazilian officials privately cut their forecast for 2012 economic growth to 3%, inline with private economists, and well below the government's official 4.5% forecast. They remain confident growth will bounce in H2, thanks to 350 basis points in rate cuts working through the pipeline as well as a number of expansive fiscal measures. The Bovespa today, -2.8%.
Comments (2)
  • Even though the market knows better, everybody likes to panic thinking this time the rate cuts won't help. Amazingly everybody wants the cuts to have an immediate impact though it takes 9-12 months. Hence, the reason the feds continue to raise and lower rates too dramatically in each cycle.

     

    Watch Brazil get impatient and lower rates another 100 basis points, then everybody will act all surprised when the economy surges in Q4.
    14 May 2012, 03:23 PM Reply Like
  • I think Brazil has grown a little to fast.....lots of loans to first timers....time wil tell...but they are very much China based..and if China slows down on Commodities...Brazil will hiccup also...but the nuevo rich do not have any savings....just appreciation ...and we know that falls apart...
    14 May 2012, 03:34 PM Reply Like
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