Brazil's Central Bank

What are they thinking raising rates 75 bps to 13.75 %. They will be cutting rates to 11% within 12 months.

As for China, the Hang Seng continues to be pressured-it needs help also. Global equity markets are deleveraging and investors are realizing that stocks sometimes go to ZERO. Risk is being repriced. Leverage is disappearing. The Central Banks are going to respond, maybe next week. Shock factor will be required to have maximum impact. Probably coordinated action.
China's central bank will soon drop reserve requirements from 17.5%-probably all the way to 12.5% in the next 12-24 months.

The Central banks have been resisting the Nuclear Option of dropping interest rates to re inflate the system since that would hurt their Masters the most-the Banks. The Banks in a hyper inflationary environment get paid back in deflated $. Debt holders get to pay back with deflated $.