Brazil Cuts Rates. Is China Next?

Brazil is one of the world's hottest economies. But even it is feeling a need to cut interest rates in response to a slowdown in the developed world.

Despite the fact that inflation is still a major concern in the land of Carnival, Brazil's central bank cut its benchmark Selic rate late Wednesday by half a percentage point.

Rates in Brazil are still a whopping 11.5%, a reflection of the strength of the oil-rich Brazilian economy. But the latest cut comes on the heels of another half-point cut back on August 31. And here's what is most telling. The decision to lower rates was unanimous.

Brazil's Comitê de Política Monetária, or Copom, said in a statement that the move was necessary to promptly mitigate "the effects stemming from a more restrictive global environment."

That's a big change from less than two months ago. The rate cut in August was met with some resistance. Two of the seven Copom members voted against lowering rates. (Richard Fisher and Charles Plosser apparently have friends in Brasilia. How do you say inflation hawk in Portuguese?)

The Greek debt crisis has only gotten worse in the past few months, leading to more calls for quick action in Europe to prevent contagion. And the economic data in the United States, while maybe not hinting at another downturn, is hardly encouraging either. Read More at CNN Money