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Your email address will not be published.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

Brazil’s Gol Reduced Fares Flying High

Gol, Linhas Aéreas Inteligentes, Brazil’s low-fare, low-cost airline, is celebrating the success of its ...

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) ...

More Jobs in Brazil Today than 1 Year Ago

Data from the Brazilian Institute of Geography and Statistics (IBGE) indicate that the employed ...

Fitch Grants Brazil Investment Grade Following Standard & Poor’s

Following in the footsteps of Standard and Poor's Fitch Ratings became the second large ...

Brazil: Lula’s Hapless Speech Brings Threats of Impeachment

A speech uttered by Brazil’s President Luiz Inácio Lula da Silva, yesterday, in the ...

Brazil’s Engevix Gets Nod from Bentley

Engevix Engenharia, a Brazilian company specializing in technical consulting services, has been nominated for ...

Not Oil But Knowledge Is the Resource that Can Save Brazil

Only two letters separate “pre-salt” from “pre-school,” but between these two options is an ...

Brazilians Expecting Pro-Jobs Package from Government This Week

In Brazil inflation was down in November amid a slowing economy and dwindling consumer ...

74.6: Brazilians Get an Extra 5 Months of Life Expectancy in One Year

Life expectancy of Brazilians went up to 74.6 years of age in 2012, according ...