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:

Ads

You May Also Like

Brazil to Enlist Doctors in Fight Against Child Abuse

In Brazil, approximately 81% of the childbeating cases that arrive in hospitals are caused ...

Brazilian Cattle Ranchers Destroying Indians Habitat in Paraguay

In the Paraguayan side of the border between Brazil and Paraguay, the last uncontacted Indians ...

90% of Amazon Timber Is Illegal and Brazil Buys Most of It

Ninety percent of all the timber currently produced in the Amazon is of illegal ...

Brazil Becomes World Leader in Stem-Cell Research

Brazil is going to lead the greatest study of adult stem cells for treatment ...

Brazil’s Samba Clubs Learn How to Draw Tourist Crowds

São Paulo state Carnaval samba schools have managed to increase their profits and to ...

Latest Revised Official Numbers See Brazil Growing a Mere 1% in 2009

The economic authorities in Brazil have again downgraded the economy's growth forecast for this ...

Brazil and UN Peace Mission to Remain in Haiti Past the Election

The head of the UN  peace mission in Haiti (Minustah), the Chilean diplomat, Juan ...

Chavez Promises Lula No Brazilian Company Will Be Nationalized in Venezuela

Hugo Chavez, the president of Venezuela, told his Brazilian counterpart, Luiz Inácio Lula da ...

Brazil’s Lula and Argentina’s Kirchner Talk About Mercosur’s Viability

The leaders of Argentina and Brazil are meeting in São Paulo, in the Brazilian ...

Terror Before Brazil Air Crash: ‘Slow Down!’, ‘I Can’t!’

A Brazilian congressional inquiry on Brazil's deadliest air accident last month, which left 199 ...