Brazil’s real weakened after inflation surprisingly accelerated and as Goldman Sachs said the currency is poised to drop another 11 percent this year while the government struggles to contain consumer-price increases and shore up its budget.
Sentiment in Brazil remains distinctively negative and the dominant view is that things will get worse before they get better, Alberto Ramos, a senior economist at the bank, wrote in a report Tuesday after a three-day visit to Brazil and meetings with policy makers at the Finance Ministry, central bank, national development bank and Petrobras.
