(MENAFN) For the first time in two years Brazil's inflation rate fell below 5 percent with help from the government, reported the Financial Times.
Emerging global markets such as India are not doing as well with decreasing their inflation rate which is high with low growth rates following it. Brazil on the other hand, had an inflation rate of 4.99 percent in May which lead to the belief that the government's plan of reducing interest rates while reducing prices as well was benefiting them.
The governor of Banco Central do Brasil, Alexandre Tombini cut down interest rates from 12.5 percent ten months ago to 8.5 percent in May.
President Dilma Rousseff plans on trying to leverage the international economic crisis as an opening to lower Brazil's real interest rates permanently.
Economists argue that although lower inflation rates are generally good that government should not overdo the stimulus packages because of low growth in the first half of 2012.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.