Brazil Balks at Rate Rise, Picks Recession Fight Over Prices
- Economy heads toward the worst downturn in more than a century
- Two members of the board dissented, voted for 14.75% rate
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In a surprise decision, Brazil balked at raising interest rates as it wagers the nation’s worst recession in decades will be enough to damp double-digit inflation.
Just 15 of 57 analysts surveyed by Bloomberg predicted the outcome, which marks the fourth straight meeting that borrowing cost were kept unchanged at 14.25 percent. The remainder of economists expected an increase of 25 or 50 basis points, and two members of the eight-person central bank board voted for a 50-point hike to 14.75 percent.