Brazil Signals Rate to Stay Flat on Impact of China Slowdown
- Central bank highlights recession, China landing in minutes
- Swap rates fell as traders pare bets on hiking this year
Is It Time to Get Back into Emerging Markets?
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Brazil’s central bank president Alexandre Tombini is betting on a weak domestic economy and slowing Chinese demand to help bring inflation down this year, signaling the benchmark lending rate will stay on hold.
"The reading of the central bank on the impact of China and recent international turbulence is that they will be recessionary," Enestor dos Santos, principal economist at bank Banco Bilbao Vizcaya Argentaria SA, said about the minutes to last week’s rate decision published Thursday. "They don’t look like minutes of a central bank that will increase rates."