Further problems from the emerging markets and the Indian Rupee hit an all time low against the US dollar at 65.6. This prompted their government to annnouce a series of infrastructure projects totalling £17.7bn to try and boost the flagging economy, which is currently only growing at 5% per annum and seen a weakening.
Meanwhile Brazil faces similar woes but is using financial stimulus packages to try and stem the fall in value of their currency with up to $60bn put aside to pump into the markets. Considering the amount of infrastructure projects already ongoing in the country, with the World Cup AND Olympics, it is no surprise that the government has deemed fit to use financial tools. This has lead to calls that inflation could spiral out of control if kept unchecked.
