LISBON -(Dow Jones)- Central Bank of Brazil President Alexandre Tombini Monday gave a strong warning to matured economies that unless they coordinate efforts to control the sovereign-debt crisis, the global economy will head toward a severe slowdown.
"The economic scenario is extremely complex, and if we don't do anything, it will deteriorate further in the next months," Tombini said at a conference of central banks of Portuguese-speaking countries.
According to Tombini, the troubled international environment has hit growth in emerging economies.
In an unexpected move, Brazil's central bank cut its benchmark Selic rate last month, citing the worsening global economic outlook. The bank has also said it will lower its forecast for economic growth at the end of this month, from a 4% growth in 2011.
"We are clearly in the second phase of the financial crisis that started in 2008," Tombini said.
"This has created challenges to the emerging economies, which we are quickly trying to deal with," he added.
Source: www.nasdaq.com
"The economic scenario is extremely complex, and if we don't do anything, it will deteriorate further in the next months," Tombini said at a conference of central banks of Portuguese-speaking countries.
According to Tombini, the troubled international environment has hit growth in emerging economies.
In an unexpected move, Brazil's central bank cut its benchmark Selic rate last month, citing the worsening global economic outlook. The bank has also said it will lower its forecast for economic growth at the end of this month, from a 4% growth in 2011.
"We are clearly in the second phase of the financial crisis that started in 2008," Tombini said.
"This has created challenges to the emerging economies, which we are quickly trying to deal with," he added.
Source: www.nasdaq.com
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