No Rate Cuts Seen in Brazil Despite Recession, Analysts Say

Brazil won’t have room to cut interest rates next year as inflation remains above the upper limit of the target in spite of a deepening back-to-back recession, according to a central bank survey.

Policy makers will keep the benchmark interest rate on hold at 14.25 percent next year, compared to a forecast of 14.13 percent a week earlier, the median estimate of about 100 economists in a Dec. 4 central bank survey shows. The survey followed indications by policy makers last week that the central bank is ready to boost borrowing costs next year.