June 24 (Bloomberg) -- Brazil’s longer-term swap rates rose after analysts surveyed by the central bank raised their inflation forecasts, adding to speculation that policy makers will sustain the pace of increases in borrowing costs.
Swap rates due in January 2016 climbed four basis points, or 0.04 percentage point, to 11.32 percent at 10:03 a.m. in Sao Paulo. The real depreciated 0.4 percent to 2.2508 per U.S. dollar after falling on June 20 to 2.2575, the weakest level since April 2009.
“The general expectation is that they’ll hike more because of what’s happening with the exchange rate,” Tony Volpon, the head of research for the Americas at Nomura Holdings Inc., said in a phone interview from New York.
About 100 economists in a weekly central bank survey published today raised their median forecast for year-end inflation to 5.86 percent from 5.83 percent
To contact the reporter on this story: Blake Schmidt in Sao Paulo at email@example.com
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org