Brazil Signals Rate Rise on the Radar as Impeachment Starts
- Central bank says it will do what it takes to tame inflation
- Real appreciated after house speaker accepted impeachment plea
Rousseff's Job at Risk, Charges Could Lead to Her Ouster
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Brazil’s central bank signaled it’s ready to boost borrowing costs early next year as the start of impeachment proceeding against President Dilma Rousseff deepens a political crisis that is derailing the economy.
Higher political and economic uncertainties threaten to keep consumer price increases above target for longer than initially expected, the central bank said Thursday in the minutes to its Nov. 24-25 meeting. It vowed to adopt the measures needed to hit the 4.5 percent inflation target in 2017. The bank published the comments less than 24 hours after the head of lower house accepted an impeachment process against Rousseff.