Spending spree.Brazil's benchmark interest rate Benchmark interest rate Also called base interest rate, it is the minimum interest rate investors will demand for investing in a non-Treasury security. It is also tied to the yield to maturity offered on the comparable-maturity treasury security that was most recently issued (on-the-run). has fallen to the mid-teens after peaking at 26.50% in early 2003--and it's expected to stay steady in the near future. Prices and economic growth seem to allow for increased borrowing, judging from recent Central Bank moves, which should in turn rev up Verb 1. rev up - speed up; "let's rev up production" step up increase - make bigger or more; "The boss finally increased her salary"; "The university increased the number of students it admitted" 2. the economy. Brazil's inflation, too, has been tame through 2004, which should keep lending rates low, analysts say. "The macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. principals are generally moving in the right direction," says Joydeep Mukherji, a sovereign analyst at credit-ratings agency Standard & Poor's. Brazil's monetary authority, however, will not rush to bring rates down even further, as doing so would weaken the real. Brazil also bears a hefty heft·y adj. heft·i·er, heft·i·est 1. Of considerable weight; heavy. 2. Rugged and powerful. See Synonyms at heavy. 3. debt burden and needs high interest rates to pay it down. Standard & Poor's has kept its rating at just below investment grade, but a rate change upward is possible. "We are seeing more positive trends than negative trends," says Mukherji. |
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