Brazil interest rates 'will keep dropping'

Interest rates in Brazil will continue to fall as long as the central bank in the country ensures its monetary policy remains "responsible", it has been claimed.

Head of the bank Henrique Meirelles told a newspaper in the country that the figure - which is currently one of the highest in the world - will keep declining over the coming months, Reuters reports.

A one per cent reduction in the rate, bringing it down to 12.75 per cent, was made last week - the first reduction in 16 months and double what many analysts had forecast.

"The real interest rates … are falling gradually in Brazil and the trend is that they keep falling in the long-term as long as responsible policies … are maintained," Mr Meirelles told the news source.

Property investors who are considering making a purchase in the country may welcome the news, as it could potentially reduce the cost of buying a home in Brazil.

Halifax recently noted that the country is increasing in popularity among tourists wanting to visit an affordable destination outside of the eurozone.

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