In a Yield-Starved World, No One Wants Brazil’s 12% Rates
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No one wants to invest in Brazil’s real. Or too few people, at least, for it to matter: The currency has fallen on an almost daily basis the past five weeks.
What’s perhaps most eye-catching about the decline is that it comes at a time when Brazil is lifting its benchmark interest rate to over 12 percent, a sharp contrast to the reductions and monetary stimulus being pursued by policy makers around the globe.