Brazil’s swap rates declined on speculation policy makers will signal a slowdown in the pace of borrowing cost increases in minutes of their November policy meeting scheduled to be published tomorrow.
Swap rates on the contract maturing in January 2015 fell four basis points, or 0.04 percentage point, to 10.70 percent at 10:27 a.m. in Sao Paulo.
The real appreciated less than 0.1 percent to 2.3685 per U.S. dollar after falling yesterday to a three-month low.
While the central bank raised borrowing costs on Nov. 27 by a half-percentage point for a fifth straight meeting, it omitted from its statement language used previously to signal that more increases of that size are needed to curb inflation.
Latin America’s largest economy shrank 0.5 percent in the third quarter, the most since the global financial crisis in 2009, the government reported yesterday.
“No one is brave enough to bet on higher rates in the short term when they’re thinking the minutes tomorrow may be more dovish,” Marco Antonio Caruso, an economist at Banco Pine SA in Sao Paulo, said in a telephone interview.
“People are revising their growth estimates downward.” Brazilian industrial production rose 0.9 percent in October from a year earlier after a 1.8 percent growth rate in the prior month, the national statistics agency reported today. The median forecast of analysts surveyed by Bloomberg was for an increase of 0.4 percent.
bloomberg.com
Swap rates on the contract maturing in January 2015 fell four basis points, or 0.04 percentage point, to 10.70 percent at 10:27 a.m. in Sao Paulo.
The real appreciated less than 0.1 percent to 2.3685 per U.S. dollar after falling yesterday to a three-month low.
While the central bank raised borrowing costs on Nov. 27 by a half-percentage point for a fifth straight meeting, it omitted from its statement language used previously to signal that more increases of that size are needed to curb inflation.
Latin America’s largest economy shrank 0.5 percent in the third quarter, the most since the global financial crisis in 2009, the government reported yesterday.
“No one is brave enough to bet on higher rates in the short term when they’re thinking the minutes tomorrow may be more dovish,” Marco Antonio Caruso, an economist at Banco Pine SA in Sao Paulo, said in a telephone interview.
“People are revising their growth estimates downward.” Brazilian industrial production rose 0.9 percent in October from a year earlier after a 1.8 percent growth rate in the prior month, the national statistics agency reported today. The median forecast of analysts surveyed by Bloomberg was for an increase of 0.4 percent.
bloomberg.com
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