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Incoming president Dilma Rousseff has changed her tune about interest rates. The government will soon try to bring its Selic rate down, so its economy doesn't continue to attract "hot money" from developed countries.
But officials also admit that the bank's Selic rate will go up before it comes down, due to a recent spurt in inflation.
Finance Minister Guido Mantega ( pictured) recently announced cuts that would total more than 20 billion reais ($11.6 billion) and Rousseff has requested a "heavy hand" on fiscal spending in both the short- and long-term.
