• Categories
  • Archives

Brazil to Slow Growth Pace Now

Brazilian markets rose, as investors reacted positively to an in-line interest rate hike in the U.S. The Federal Reserve raised interest rates to 2.00% from 1.75%, as widely expected.

Additionally, the Fed left the language in its accompanying statement largely unchanged, suggesting that it remains optimistic about the economy and will implement future rate increases at a measured pace.


Brazil’s benchmark Bovespa Index advanced 238.68 points, or 1.03%. Brazilian shares rose, as worries over steep domestic and U.S. rate hikes eased.


The monetary tightening in the U.S. was viewed as benign for markets, including Brazilian shares, with analysts stating that the 25-basis point rate increase had largely been priced into Brazilian equities ahead of time.


On the Brazilian inflation front, Sao Paulo’s Fipe research institute said its consumer inflation index rose 0.65% over the four weeks ended November 7, compared with the 0.62% increase in the calendar month of October, primarily due to transportation costs.


The result was in line with analyst forecasts of 0.40% to 0.72%. The largely benign numbers led to expectations of no dramatic new moves by the Brazilian Central Bank, which meets on November 16 and 17 to review monetary policy again.


On Thursday, the government’s statistics institute will post the IPCA Broad Consumer Price Index, which the central bank uses to guide its decisions on interest rates.


Also, the government’s Brazilian Institute for Geography and Statistics reported that industrial output was stable in September from August, concluding a six-month upward trend.


However, industrial output increased 7.6% from the same month last year, when the economy contracted.


Economists predict that industrial output will stabilize or fluctuate moderately for some time to come as the economy has already displayed a strong recovery this year and most of the industry is working close to its capacity limits.


Thomson Financial Corporate Group
www.thomsonfinancial.com/
PRNewswire

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Your email address will not be published.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

Songs That Won’t Die

While bossa nova is used as a watershed, A Canção no Tempo (The Song ...

Brazil’s Embraer Flying in 58 Countries

Air Canada has signed a US$ 1.35 billion contract for the purchase of 45 ...

Brazilian Gasoline Gets Back Its 25% Alcohol Addition

Brazil has two kinds of sugarcane-based ethanol. There is a pure ethanol. And there ...

In Brazil-Argentina Trade It’s Goodbye Dollar, Hello Peso and Real

Trade transactions between Brazil and Argentina may be made in Brazilian reais or Argentinean ...

US Helps Break Up Brazilian Prescription-Drug Internet Gang

With the help of the American Drug Enforcement Administration (DEA) the Brazilian Federal Police ...

Brazil Discusses Public Radio with the World

Radio broadcasters from Brazil and other countries attended a meeting of the Brazilian Association ...

US Stubbornness Is Sole Explanation for Cuba Embargo, Says Brazilian President

For the Brazilian president the only reason the US embargo against Cuba continues to ...

Brazilian economist Plínio Soares de Arruda Sampaio

Lula’s Closeness to Chavez Only Makes Brazil More Alluring to Bush

The Bank of the South is already a reality. Enthusiasts say it is another ...

Merrill Lynch Raises Price on Brazil’s Embraer Stock

Latin American stocks climbed higher, even with Brazil’s market still closed for the Carnaval ...

Brazil Has Already Slaughtered 34,000 Cattle Due to Foot and Mouth Disease

Starting yesterday, May 1st, cattle breeders in 14 states and the Federal District (DF) ...