As Brazil’s monetary policy committee sits down in Brasília the consensus view is that it will attempt to regain some credibility in the fight against inflation and raise its policy interest rate by 50 basis points for a third consecutive time. That would bring its target overnight rate, the Selic, to 12.75 per cent a year. Even after discounting inflation of about 7.5 per cent, that is still a very hefty 5.25 per cent a year. So whatever the Copom announces on Wednesday evening after two days of deliberation – it will be either 50bp or 25bp – it will raise protests from labour unions and others worried about the impact of high interest rates on consumption and jobs.
But policy makers may well feel that, right now, inflation matters more. Read more
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The strategic rivalry between Japan and China in Asia is finding expression not only in territorial disputes in the east China sea but also in plans for railways to criss-cross Thailand and eventually link the country to a wider Indochina rail network.
Both lines will serve primarily as freight transport systems. The planned Chinese-backed railway will run north-south from Thailand’s main deep seaport in Rayong to the Laos border at Nong Khai, with a separate spur that connects to Bangkok. Read more
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