Brazil’s central bank held its benchmark interest rate at a record-low 6.50% on Wednesday, as expected, holding back from signalling looser policy because of doubts on economic reforms. The scenario outlined by policymakers was one of anaemic economic growth and high levels of economic slack putting downward pressure on inflation at home, plus the prospect of interest rates coming down in major developed economies.1 comment
Brazil posted a surprise current account deficit in April, central bank data showed on Monday, although as a share of national economic output Brazil's balance of payments shortfall with the rest of the world is showing signs of stabilizing.
Brazil posted a trade surplus of US$ 4.99 billion in March, the Economy Ministry said, significantly smaller than the same month a year ago thanks to a strong rise in imports. The trade surplus last month fell 22.3% to US$ 4.99 billion from US$ 6.42 billion a year ago, although that was up more than a third from February’s surplus of US$ 3.67 billion.
Brazil’s central bank will take its time analyzing the economic impact from an increasing number of shocks from abroad and rising political tension at home that appear to be slowing the government’s reform process, its president said.
Brazil's interest rates remained unchanged on Wednesday after the central bank held its first monetary policy meeting under its new chief Roberto Campos Neto. The central bank's unanimous decision -- only the second since pro-business President Jair Bolsonaro took power in January on a promise to revive Latin America's biggest economy -- to keep rates at 6.5% was in line with market expectations.
Brazil's Senate-confirmed Roberto Campos Neto as central bank governor on Tuesday, after he stressed that controlling inflation and reining in public spending were critical to supporting economic growth.
Brazil’s central bank left interest rates at a record low on Wednesday as expected, and signaled it is in no rush to change them even though inflationary pressures have cooled. The bank’s nine-member monetary policy committee, Copom, voted unanimously to keep the benchmark Selic rate at 6.5% for the seventh straight meeting.
The fast pace of Brazilian president Jair Bolsonaro continued on Friday, with current central bank Governor Ilan Goldfajn telling newspaper Valor Economico that the new administration is likely to empower the central bank to approve the entrance of new foreign lenders into Brazil.
Industrial output in Brazil plummeted in May at the sharpest pace in a decade, highlighting the deep impact of a nationwide truckers' strike in the final weeks of that month. Production fell 10.9% from April, government statistics agency IBGE said on Wednesday, the largest decline since December 2008.
Brazil’s central bank on Thursday slashed its growth forecast for 2018 gross domestic product after a nationwide truckers strike paralyzed key sectors of Latin America’s largest economy. The bank sees GDP growth of 1.6% this year, according to its quarterly inflation report, compared to 2.6% previously.