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But it made no mention of raising the benchmark interest rate, which is already at 17.75percentt.
See articleThe European Commission proposed capping the use of biofuels to 5% of all transport fuel, rather than raising the benchmark.
Raising the benchmark rate will hit them especially hard at a time when many of them are struggling to repay previous loans and avoid laying off workers.
Market-watchers expect the Central Bank, whose president, Alexandre Tombini, is bent on showing his independence, to defend the inflation target by raising the benchmark interest rate, which is already at 11.25%.
The lowering of inflation expectations led some economists to predict that the Fed might wait even longer to start raising the benchmark fed funds rate, the rate at which banks lend to each other overnight.
Raising the benchmark rate will hit them especially hard at a time when many of these enterprises are already struggling to repay previous loans and avoid laying off workers.
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The Federal Reserve has indicated that it intends to slowly but surely raise the benchmark interest rate.
Then, the bank raised the benchmark interest rate to 4.25 percent from 4 percent even as the financial crisis was gathering force.
One council member, Andrew Sentance, voted to raise the benchmark rate to 0.75 percent from the record low of 0.5 percent.
The bank has raised the benchmark interest rate twice since April to prevent inflation in fast-growing countries like Germany and the Netherlands.
C1 Fed Raises Rates Again The Federal Reserve raised the benchmark federal funds rate on overnight bank loans to 4.25percentt from 4percentt.
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