How Much Will Brazil Hike Interest Rates?

Brazilian markets rose modestly, this Monday, ahead of a flood of U.S. earnings releases and interest rate hikes. Brazil’s central bank is expected to tighten monetary policy on Wednesday.

Brazil’s benchmark Bovespa Index added 43.23 points, or 0.18%. Brazilian issues edged higher, with rate hike fears limiting buying after oil prices topped US$ 55 a barrel in pre-session trading.


Investors remain concerned that the central bank will increase its benchmark Selic rate by half a percentage point to 16.75% on Wednesday to check any resulting inflationary pressures, outpacing the modest quarter percentage point hike most analysts expect.


A rise in rates would mark the second hike in two months, representing the conclusion to a money-loosening cycle that lifted Brazil out of last year’s recession and drove growth this year.


Meanwhile, shares of Embratel declined. The long-distance telecom provider will post quarterly earnings following the close. Analysts foresee unchanged revenues, but slightly stronger earnings on cost controls and higher rates.


Also, long steel maker Gerdau SA was active on word it plans to invest 750 million reais in a plant in São Paulo state that will begin operation in May 2005.


The company reopened plans to eventually produce up to 1.3 million tons of steel at the new mill, driven by Brazil’s economic recovery, and 1.2 million tons in steel beams. Production is scheduled to begin in May 2005.


Thomson Financial Corporate Group
http://www.thomsonfinancial.com/

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Politicking on Independence Day in Brazil

7 September is Brazilian National Day, the occasion when Dom Pedro declared his independence ...

80-Million-Year-Old Croc Relative Gets Splashy Debut in Brazil Museum

Brazil has put on public display for the first time at the Federal University ...

Fetus With No Brain to Be Used in Transplants in Brazil

Brazil’s Federal Council of Medicine (CFM) approved this Wednesday a resolution that permits Brazilian ...

Brazil’s Lula Meets With Mexico’s Fox in Argentina

Brazilian President Luiz Inácio Lula da Silva will attend, today, at 4:30 PM, the ...

With 20 Parties, Everyone Gets Something from Brazil Municipal Elections

With more than 20 official political parties, election results in Brazil are always mixed. ...

Brazil Hosts UN Conference on Digital Inclusion

For the first time, Brazil is going to host the world conference “Wireless Internet ...

Brazil Cannibalism: Man Gets 16 Years for Killing and Eating Foe’s Heart

Brazilian carpenter Gilmar Alberto Wasckman, 46, was convicted this Friday, July 31st, by a ...

Cattle Genes Bring Brazil US$ 80 Million in 2008

Since 2004, Brazil has been the world's largest exporter of cattle beef and, more ...

RAPIDINHAS

The first thing that strikes you in Rio is the color, masses of it ...