The Central Bank of Brazil assures that there is a high chance to drop its benchmark rate from 10.5% to 10%. The bank’s board is focused on spurring economic growth and making significant structural changes in the country’s economy that will allow it to continue lowering borrowing costs. According to experts interviewed by Bloomberg News, the change in the rate is a consequence of national and international developments, including the debt crisis in Europe. The new strategy is to prioritize economic growth at the expense of more control over the inflation. Among emerging market economies Brazil has taken the lead in cutting borrowing costs to protect itself from the debt crisis in the eurozone.

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