Brazil Back to the Top of World’s Highest Interest Rate, at 9.50%

Brazilian money, the real Copom, Brazil’s Monetary Policy Committee, linked to the Central Bank (Brazil’s Fed), decided to raise Brazil’s benchmark interest rate, known as the Selic, to 9.50%.

The rate had been steady at a historical low of 8.75% for nine consecutive months. The decision was unanimous and reflects concern with inflation as the Brazilian economy has charged out of the Great Recession.

At the last Copom meeting, in March, three of the eight directors had already voted to raise interest rates, but were defeated.

With this decision, the economy will slow a little and Brazil returns to the top of the list of country with the world’s highest real interest rates (which will now be 4.5% annually).

Indonesia is in second at 3%, followed by China at 2.8%. The fact is that most of the world, with everyone scalded by the international financial crisis, has their basic interest rates near zero.

Income Tax Time

Computers at the Brazilian IRS (“Receita Federal”) are humming away. An average of 190,000 income tax returns are coming in per hour. Wednesday, April 28, at noon, a total of 17,900,000 returns had been delivered.

That is almost 75% of the 24 million expected this year. Or, to put it another way, one out of every four Brazilians who have to file had still not done so. The deadline is today, April 30, at midnight.

Here is some information about income taxes in Brazil. Everyone in Brazil who had income of over 17,215.80 reais must file a return. That comes out to almost US$ 10,000 at the current exchange rate.

There are two tax rates: 15% and 27.5% (for investments there are four – the highest is 22.5%). Brazilians can deduct dependent children to the age of 21, 1,730 reais (about US$ 1,000) each.

Educational expenses can be deducted up to 2,708 reais (around US$ 1,590) per dependent. In Brazil more than 99% of all income tax filings are made electronically. And, finally, it should be pointed out that in Brazil the minimum wage (per month) is 510 reais (around US$ 300).

ABr

Tags:

You May Also Like

Brazilian Dam Victims Camping in the Gardens of ID Bank

The families of the Movement of Dam Victims (MAB) will remain camped outside the ...

Rio-based Pandeiro Jazz Pioneer Scott Feiner Goes the Crowdfunding Way

Rio de Janeiro-based Scott Feiner, like many independent artists of late, is reaching out ...

Boeing, Saab, Dassault Wooing Brazil for US$ 4.5 Bi for 120 Fighter Planes

Boeing Co, which is US Defense contractor, says that it  is prepared to have ...

Native Pride

It’s still difficult to determine the exact number of reemerged peoples, since reaffirming their ...

Supreme Reverts Lower Court: American Boy Sean Stays in Brazil

American David Goldman, after a five-year judicial fight to have custody of his biological ...

Brazil: 20% Jobless in São Paulo

Almost 2 million people or 20 percent of the economically active population are without ...

Brazil Decides to Accept Reais for International Deals

With permission by the Brazilian government for payment in the national currency abroad exporters ...

Brazil’s Lula in Africa for UN Conference on Trade and Development

With the presence of Brazilian President, Luiz Inácio Lula da Silva, the 12th United ...

Brazil: Killing Waters Down South, Choking Fires in Brasília

The rain will be less this week than last and river levels began to ...

Lula Foresees ‘Surprising Growth’ in Brazil Next Year

Brazilian President Luiz Inácio Lula da Silva said this Wednesday, July 28, that he ...