Currencies
Brazil’s Real Falls as Central Banker Tempers Investor Bets on Interest Rate Hikes
- Campos Neto sounds ‘less hawkish’ tone in newspaper interview
- Bank chief calls for caution amid market expectations of hike
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Brazil’s real weakened after central bank chief Roberto Campos Neto signaled interest rate hikes are less certain than markets forecast, underwhelming investors who see a tightening cycle starting next month.
In a Tuesday interview with O Globo newspaper, Campos Neto said that while policymakers indicated they would raise the benchmark Selic from its current level of 10.5% if necessary, he does not remember mentioning a rate hike. He called for calmness and caution in times of volatility, saying the international outlook has improved and above-target inflation will slow.