Brazil Central Bank Pledges to Hike Rates to 14.25% by March
1 week, 5 days ago

Brazil Central Bank Pledges to Hike Rates to 14.25% by March

Live Mint  

-- Brazil’s central bank increased the benchmark interest rate by a full percentage point and promised to deliver two hikes of the same size in the next two meetings as it rushes to recover investor confidence and tame inflation expectations. Through FX credit-line auctions, the central bank sells the so-called dollar spot and pledges to buy it back in the near future in exchange for a certain interest rate. Central bankers have now lifted rates by 1.75 percentage points since September, and most analysts see the tightening cycle extending through early 2025. Central bankers have repeatedly called for a credible fiscal plan that can rein in expenditures, allowing them to resume interest rate cuts.

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Brazil Central Bank Holds Biggest Dollar Auction in 4 Years
1 week ago

Brazil Central Bank Holds Biggest Dollar Auction in 4 Years

Live Mint  

-- Brazil’s central bank conducted its biggest dollar auction in the spot market since the first weeks of the pandemic on Monday as it fights to regain control over inflation expectations amid a soaring fiscal deficit. The nation’s central bank has been pulling out all the stops to curb a currency selloff, raising interest rates and now intervening directly in …

Lula Says the Only Thing Wrong With Brazil Is High Rates
1 week, 1 day ago

Lula Says the Only Thing Wrong With Brazil Is High Rates

Live Mint  

-- Brazil’s interest rates are too high, and responsibility for the growing fiscal problems lies with policymakers at the central bank, President Luiz Inacio Lula da Silva said Sunday night in a TV interview. In the statement accompanying the decision — the last chaired by Governor Roberto Campos Neto, who’s set to be replaced by Gabriel Galipolo — policymakers emphasized …

Brazil’s real set for first weekly rise in a month after rate hike
1 week, 3 days ago

Brazil’s real set for first weekly rise in a month after rate hike

Live Mint  

* Latin American currencies up 0.4% on the week, stocks down 0.2% * Brazil's economic activity up 0.1% in October * Peru's central bank sees economy growing over 3% in 2024 By Pranav Kashyap, Johann M Cherian Dec 13 - Most Latin American currencies were poised to log modest gains this week, with Brazil's real on track for its first …

Lula Names Three Brazil Central Bank Directors as Key Rate Rises
3 weeks, 3 days ago

Lula Names Three Brazil Central Bank Directors as Key Rate Rises

Live Mint  

-- Brazil President Luiz Inacio Lula da Silva nominated three new central bank board members on Friday as investors pressure for more aggressive interest rate hikes to cool the economy and tame inflation. The central bank is facing intense pressure for steeper interest rate hikes after the government’s public spending cut plans dismayed investors. The institution’s incoming Governor Gabriel Galipolo …

Brazil enters into recession as post-COVID recovery falls flat
3 years ago

Brazil enters into recession as post-COVID recovery falls flat

Al Jazeera  

The blow to economic growth comes as President Jair Bolsonaro prepares for his re-election campaign. Brazil’s economy fell into recession as extreme weather conditions, high interest rates and inflation cut short its recovery from the pandemic, dealing a blow to President Jair Bolsonaro just as he prepares for his re-election campaign. Unemployment stands above 12%, annual inflation is running at …

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