Higher interest rates alone won’t protect Brazil from stagflation

This Wednesday, Brazil’s Central Financial institution bumped the Selic benchmark rate of interest by one other share level, pushing it to six.25 % a 12 months. Nevertheless, there are issues that this newest transfer will probably be unable to tame inflation or cease Brazil from slipping into the worst attainable financial state of affairs: stagflation. 

A portmanteau of stagnation and inflation, “stagflation” is feared by economists all over the world, being characterised by a sluggish economic system during which costs don’t cease rising.

With a mix of political and power crises, analysts in Brazil consider that, even when the nation just isn’t in stagflation but, it is going to be…