Indicators
Brazil Economy Soars Past All Forecasts as Bets on Interest Rate Hikes Grow
- Economy expanded 1.4% q/q and 3.3 y/y in second quarter
- Traders see central bank raising rates at Sept. 18 meeting
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Brazil’s economic growth picked up much more than expected in the second quarter, powered by strong consumer spending, raising the prospect of interest rate hikes in the near future.
Official data released on Tuesday showed that gross domestic product expanded a whopping 1.4% in the April-June period compared to the first quarter. The number surpassed all forecasts in Bloomberg survey of analysts that had a 0.9% median estimate — and was far more than what economists were predicting at the beginning of the period.