Banco Central Government

The Government of Lula da fight the crisis. Does the Central Bank help you today? Buenos Aires, Argentina 21 January 2009 already in an article of last week Lula you can reverse the negative picture of the Brazilian economy in 2009? spoke les about the disadvantages that the Brazilian economy, with a sharp decline in the level of activity, one jump no less in the level of unemployment and discouraging prospects for the external sector is going through. The deterioration of economic prospects in Brazil have affected the investment plans of the companies further deepening the economic slowdown. As da has the site Argentine El Cronista, because of global financial instability, more than 30 Brazilian and foreign companies suspended or deferred their investments in that country, for a total of US $28,000 million. It is worth saying that the suspension in the investment plans is not responding problems in the Brazilian economy, but the problems in the economy world where pointed such investments.

The situation remains alert to the Brazilian Government that in order to compensate for the negative impact of the decrease in investment plans, lower domestic consumption and lower external demand is studying the possibility of launching new stimulus programs in sectors such as civil construction, agribusiness and automotive industry. On the other hand, since the Brazilian Government is being evaluated increase financing of ventures in steel industry and infrastructure. From the side of monetary policy, which becomes relevant at this time of crisis for its ability to stimulate domestic demand, today the decision of the Committee of monetary policy of the Central Bank of Brazil will be known about its reference interest rate. Since the market has already anticipated a cut of at least 50 basis points. For the market, monetary policy will be less rigid during this year of what was anticipated at the beginning of the same.