03 May 2012

BRASIL : Dilma Pushes For Historic Change In Fixed Savings Rate; Real Hits 3 Year Low.


     Since 1861...domestic savers could count on their rate being about 6%.
     But perhaps not for much longer.
     President Dilma Rosseff wants to lower the benchmark Selic rate...even now at a near historic low... 9%.
     To do so..she must also scrap the fixed domestic rate...highly prized by savers during decades of inflation.
      One economist calls the move...to change it by executive decree...'a really, really high-stakes bet.'
    Previous attempts to revise the domestic rate were met by clamor and outcries.
    The REAL has lost over 3% so far...and hovers around 1.9359 per usd....a 3 year low.