Brazil raises reserve ratio to ease impact of capital inflows

centralbank-brazil

The Central Bank of Brazil on Friday introduced a series of macroprudential measures aimed to address rising capital inflows in a bid to restrict credit growth and contain inflation.

The central bank said it would increase reserve requirement on time deposits from 15% to 20%, with additional reserve requirements on demand and time deposits rising from 8% to 12%. The move will absorb R61 billion ($36.1 billion) of liquidity from the economy.

The rise in the reserve ratio comes amid growing fears

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