Economics
Brazil Swap Rates Rise as Lula Amps Up Central Bank Attack
- A more stable currency would help mitigate inflation, he says
- Country’s swap rate curve shows fading bets on easing cycle
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Brazil’s swap rates rose further after President Luiz Inacio Lula da Silva bolstered criticism of the central bank, saying high interest rates are ruining the economy while failing to control inflation.
The leftist president elaborated on previous criticism of the monetary authority in a message sent to lawmakers on Thursday afternoon and then in a TV interview broadcast late on the same day. Swap rates, which had already been rising since the central bank vowed to keep its key rate unchanged until inflation expectations converge to target, extended gains after his comments.