Since Tito warned of biting the economy with interest rates--speculation was that he would raise 2%. Some banks have fallen 20% in response. If Tito only raises 1% Banks should shoot up 10% and 15% if he only raises .5%. If He raises 1% and the market does not push up the Bank shares that would mean that they have factored in another 1% for August. If Tito raises 2% the Banks shares could fall another 20% in anticipation or hold and drop slowly as the next meeting approachers. For now it's a question of sold on the rumor and buy on the fact if there is only a .5% raise. As this inflation is "push inflation" raising interest rates will not doctor the illness. What will help is for the unions to not demand dubble digits wage increases. Tito must not bit with more interest rates as this is giving the economy rabies and is also contributing to xenophobia.
