Why on earth do journalists report interest rate cuts as percentage POINTS, and all the rest in percentages? This is terribly misleading.
Interest rates have been cut in Brazil by another 20%, and interest is the price of money. If cars prices were slashed how do you expect it to be reported?
That is one reason why monetary policies take so long to come into effect. Bad reporting.
Brazil's price of money has been cur from 5% to 4% a year, after tax that becomes 2,5% net. This means a hefty reduction in installment payments, the benchmark most poor people use when buying on credit. No one calculates the internal rates of return.
Anyway, that is another 20% on a previous 20% cut in February. Faster than that would have been foolish.
I will let readers predict what will happen to consumption of durable goods, stock market reaction, when this news slowly sinks in.