Brazilian Economy Slows

Brazil’s economy has slowed for the first time in two years, contracting 1.2% in the third quarter compared with the second. Year on year, GDP grew by 1% in the third quarter compared with 4% y-o-y growth in the second quarter. Analysts think the slowing economic expansion may prompt larger interest rate cuts by the central bank. Brazil’s benchmark interest rate has been cut three times since September but remains at a high 18.5%.