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Apr 16, 2014

Brazil food prices easing, rate hikes to be felt -Tombini

BRASILIA/SAO PAULO, April 16 (Reuters) – Food prices in
Brazil have started to ease and should bring inflation down in
coming months, central bank chief Alexandre Tombini said on
Wednesday, reinforcing views that policymakers are ready to wrap
up their year-long campaign of rate hikes.

He reiterated that a significant part of the impact of past
rate increases on inflation has yet to be felt.

Apr 10, 2014

Brazil cenbank signals rate hikes pause, timing unknown

BRASILIA, April 10 (Reuters) – Brazil’s central bank on
Thursday signaled its year-long monetary tightening cycle is
coming to an end, but left the door open for one more rate
increase to tame a spike in inflation

In the minutes of its last rate-setting meeting on April 2,
the bank said most of the effects of past rate hikes on
inflation should be felt in coming months, hinting it may not
need to further increase borrowing costs. The central bank then
decided to hike rates by 25 basis points to 11 percent.

Apr 8, 2014

Brazil election jitters may hit investments in 2014 -source

BRASILIA, April 8 (Reuters) – Brazil’s presidential vote
will likely delay some investment decisions this year but
spending on infrastructure is expected to remain strong, a
senior government official told Reuters.

Although President Dilma Rousseff is the favorite to win the
Oct. 5 general election, many investors could withhold funds
until the next government outlines its plans for the following
four years, which could hamper the country’s already slow
economic growth.

Apr 7, 2014

Brazil, banks to finalize electricity fund loan in late April -source

BRASILIA/SAO PAULO, April 7 (Reuters) – A syndicated loan
aimed at helping struggling Brazilian electricity distributors
cope with the impact of dry weather could be finalized by the
end of April, a source with knowledge of the plan told Reuters
on Monday.

The government and banks are discussing the terms of the
possible loan worth 8 billion reais ($3.6 billion) to
electricity industry clearinghouse CCEE, a senior executive at
Banco Bradesco SA said earlier on Monday.

Apr 3, 2014

Brazil may end tightening after raising rates to two-year high

BRASILIA (Reuters) – Brazil raised interest rates to a two-year high on Wednesday, but signaled that it is ready to halt its aggressive monetary tightening if a surge in inflation subsides in coming weeks.

The central bank’s monetary policy committee unanimously raised its benchmark Selic rate by 25 basis points to 11 percent, its ninth straight rate increase in a year. All of the 62 analysts surveyed by Reuters had predicted the increase.

Apr 2, 2014

Brazil raises key interest rate to two-year high

BRASILIA (Reuters) – Brazil raised interest rates for the ninth straight time on Wednesday, prolonging one of the world’s longest-running monetary tightening cycles after a surge in food prices stoked already high inflation in an election year.

The unanimous decision by the central bank’s monetary policy committee raised its benchmark Selic rate by 25 basis points to 11 percent, its highest level in over two years. All of the 62 analysts surveyed by Reuters predicted the hike.

Apr 2, 2014

Brazil likely to raise interest rates again, signal more hikes

BRASILIA, April 2 (Reuters) – Brazil will likely raise
interest rates for the ninth straight time on Wednesday, aiming
to tame a surge in food prices that threatens to push inflation
through the official target ceiling in an electoral year.

All 62 economists polled by Reuters expect the central bank
to raise its benchmark Selic rate by 25 basis
points to 11 percent — what would be the highest level in more
than two years.

Mar 31, 2014

Russia’s troubles could spur dollar inflows to Latin America

COSTA DO SAUIPE, Brazil, March 31 (Reuters) – Leading Latin
American economies such as Mexico and Brazil are poised to
receive short-term capital flows from investors fleeing Russia
due to fear of geopolitical instability and an economic
recession there, analysts said.

Such inflows are not expected to be strong enough to have a
lasting impact on the countries’ exchange rates but have already
caused market buzz and became a topic of discussion during this
weekend’s annual meeting of the Inter-American Development Bank
in a resort near the Brazilian city of Salvador.

Mar 30, 2014

Latin America needs to bolster finances to face tapering-IADB

COSTA DO SAUIPE, Brazil, March 30 (Reuters) – The fiscal
deterioration of many Latin American countries in recent years
has left the region more vulnerable to shocks stemming from the
reduction in U.S. stimulus, according an Inter-American
Development Bank report released on Sunday.

It said the rise in foreign currency debt sales by banks and
non-financial companies has also left many countries more
exposed to shocks this time around than during the 2008 global
financial crisis, it referred to as the “Great Recession”.

Mar 29, 2014

Brazil cenbank to opt for ‘classical’ responses to face global risks

COSTA DO SAUIPE, March 29 (Reuters) – Brazil will continue
to respond in a “classical manner” to the changes in the global
economy that have shifted capital flows away from many
emerging-market nations, central bank chief Alexandre Tombini
said on Saturday.

The U.S.-trained economist said Brazil has continued to see
an influx of capital from abroad, a testament of the
effectiveness of authorities’ policies.

    • About Alonso

      "Alonso has worked for more than a year covering commodities in the world's top copper producer Chile. A native of Nicaragua he has workers for Thomson Reuters for nearly five years with several stints in other Latin American countries. He is a University of Missouri-Columbia graduate."
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