Brazil Rate Cut an ‘Antidote’ for Real Gains, Mantega Says

This week’s reduction in Brazil’s benchmark interest rate will help curb the appreciation of the real, and economic conditions are in place for further cuts in borrowing costs, Finance Minister Guido Mantega said.

For “the next two or three years, the conditions will be there for rates to keep falling,” Mantega told reporters in Sao Paulo today. “Falling rates are a good antidote for the gains in the real.”