Brazil's inflation rate has spiked to
its highest level in more than six years. This follows a surprise 0.5% interest rate cut at the end of August. The
central bank cited a "substantial deterioration" in the global economy in
cutting rates to 12%. Some economists think the bank's action was premature.
"The interest rate cut came too soon," said Oxford Economic's Lloyd Barton. "It's acting as a trigger for a decline in the exchange rate, and that is exacerbating the central bank's problem with inflation."
http://www.bbc.co.uk/news/business-15218174
