Brazil Swap Rates Rise on Outlook for Inflation; Real Advances

Brazil’s swap rates climbed as economists raised their forecasts for inflation in 2013, spurring speculation that the central bank will increase borrowing costs from record lows.

Swap rates on contracts due in January 2016 increased one basis point, or 0.01 percentage point, to 8.21 percent at 10:26 a.m. in Sao Paulo. The real rose less than 0.1 percent to 2.0318 per U.S. dollar, the strongest level on a closing basis since Nov. 1.

About 100 economists in a weekly central bank survey published today raised their median inflation forecast for the end of 2013 to 5.49 percent from 5.47 percent the week before.

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