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Global & Regional Focus Notes
04 November 2011
• Recent economic indicators show clear signs that the economy slowed sharply in Q3 2011, due to the lagged effects from monetary tightening, which are amplified by the global economic uncertainty. • Despite some temporary positive inflation news, there are significant upside risks in the inflation front.
• Given that there are still significant upside risks for inflation, the central bank is not expected to cut interest rates aggressively, unless the global economic backdrop worsens further, having a stronger hit to Brazil’s growth.
See also
