Rate Hike of 1.5% Is Now Brazil Base Case as Inflation Soars
- Swaps pricing suggests Central Bank move at meeting Wednesday
- Inflation jumped more than projected in early October
Photographer: Rodrigo Capote/Bloomberg
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Brazilian traders are now betting a 1.5% interest-rate increase by the central bank on Wednesday is the base case after data showed a pickup in inflation this month was larger than expected.
Money managers raised their wagers on the key rate Tuesday as consumer prices in Latin America’s largest economy accelerated 1.2% in the first half of October from the month prior, more than all estimates in a Bloomberg survey, the national statistics institute reported. The current policy rate is 6.25%.