Brazil’s swap rates fell to the lowest this month as central bank President Alexandre Tombini said inflation will converge with the target, easing speculation that policy makers will keep raising borrowing costs.
Swap rates on contracts maturing in January 2015 dropped four basis points, or 0.04 percentage point, to 11.18 percent at 11:40 a.m. in Sao Paulo.
The currency depreciated 0.4 percent to 2.3988 per U.S. dollar. Tombini said in a conference call today before next week’s policy meeting that inflation will slow in 2014.
Since April, Brazil has raised the target lending rate by 3.25 percentage points to 10.5 percent to limit increases in prices.
“Inflation is going in the right direction, which opens space for rates at lower levels than the market considered before,” Sidnei Nehme, executive director at NGO Corretora in Sao Paulo, said in a phone interview.
“Tombini did everything to reduce uncertainties in his speech.”
bloomberg.com
Swap rates on contracts maturing in January 2015 dropped four basis points, or 0.04 percentage point, to 11.18 percent at 11:40 a.m. in Sao Paulo.
The currency depreciated 0.4 percent to 2.3988 per U.S. dollar. Tombini said in a conference call today before next week’s policy meeting that inflation will slow in 2014.
Since April, Brazil has raised the target lending rate by 3.25 percentage points to 10.5 percent to limit increases in prices.
“Inflation is going in the right direction, which opens space for rates at lower levels than the market considered before,” Sidnei Nehme, executive director at NGO Corretora in Sao Paulo, said in a phone interview.
“Tombini did everything to reduce uncertainties in his speech.”
bloomberg.com
No comments:
Post a Comment