Brazil's President Dilma Rousseff is fighting for political survival less than a year after being re-elected. Several reasons have been pointed exhaustively to explain how things got so bad in such a short period of time: chief among them are the burgeoning corruption scandal at state-run Petrobras and stubbornly high inflation, out of sync with the rest of the world.
Brazil's central bank's two-day policy meeting kicks off later on Tuesday with all bets placed on a fourth straight interest rate increase, despite growing consensus that the country is headed for its worst economic recession in 25 years.
Just as ECB President Mario Draghi announced a massive bond-buying program to revive Europe's economy and fend off deflation fears, news of shockingly low inflation popped up elsewhere in the globe: consumer prices in Mexico dropped 0.19 percent in early January, far below all 19 forecasts in a Reuters poll.
from The Great Debate:
President Barack Obama has inverted U.S. policy on Cuba. His Wednesday speech adopted the proposals of those who have spent a half-century arguing for a rethinking of Cuba policy. The president recognized Washington’s failure to achieve its goal of bringing political and economic openness to Cuba.
Brazil's newly-re-elected government is set to announce on Friday that the recession that began at the start of 2014 is now over. But a minefield of risks surrounding Latin America's largest economy recommends caution before celebration.