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Brasil's National Development Bank/BNDES is spurring the economy with interest rates... as low as 6% for big businesses...even while it's central bank...has just raised the benchmark rate...for the 4th time in 2011...to 12.25%...one of the highest in the world.
"The government is trying to heat and cool the economy at the same time," said an economist. "Monetary officials have few options but to remain strict when the government keeps pouring money into vehicles like the BNDES."
The housing market is under assault by speculators...with double-digit increases in Rio and other cities...while rice and beans have almost doubled in price in three years.
The currency...the REAL has increased 40% vs usd...in just two years.
