Brazil’s swap rates fell to a one- month low as economists lowered their forecasts for growth and inflation, spurring speculation that the central bank will refrain from increasing borrowing costs next week.
Swap rates due January 2015 dropped four basis points, or 0.04 percentage point, to 8.36 percent at 10:08 a.m. in Sao Paulo, the lowest level on a closing basis since March 6.
The real rose less than 0.1 percent to 1.9846 per dollar. Latin America’s largest economy will expand 3 percent in 2013, according to the median estimate of about 100 analysts in a central bank survey published today.
They forecast growth of 3.01 percent last week. They cut their outlook for annual inflation to 5.70 percent from 5.71 percent.
“The latest central bank economists’ survey showed a modest decline in 2013 inflation and growth expectations,” Eduardo Suarez, a Latin America currency strategist at Bank of Nova Scotia in Toronto, said in an e-mailed report to clients.
Minutes of the central bank’s March 5-6 meeting indicated that an increase in the benchmark lending rate from a record low 7.25 percent wasn’t imminent as policy makers said “a cautious management of monetary policy” was needed.
Board members are scheduled to meet April 16-17.
bloomberg.com
Swap rates due January 2015 dropped four basis points, or 0.04 percentage point, to 8.36 percent at 10:08 a.m. in Sao Paulo, the lowest level on a closing basis since March 6.
The real rose less than 0.1 percent to 1.9846 per dollar. Latin America’s largest economy will expand 3 percent in 2013, according to the median estimate of about 100 analysts in a central bank survey published today.
They forecast growth of 3.01 percent last week. They cut their outlook for annual inflation to 5.70 percent from 5.71 percent.
“The latest central bank economists’ survey showed a modest decline in 2013 inflation and growth expectations,” Eduardo Suarez, a Latin America currency strategist at Bank of Nova Scotia in Toronto, said in an e-mailed report to clients.
Minutes of the central bank’s March 5-6 meeting indicated that an increase in the benchmark lending rate from a record low 7.25 percent wasn’t imminent as policy makers said “a cautious management of monetary policy” was needed.
Board members are scheduled to meet April 16-17.
bloomberg.com
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