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Jul 2, 2015

Brazil central bank chief more upbeat about taming inflation

SAO PAULO/BRASILIA, July 1 (Reuters) – A “substantial” drop
in inflation expectations in Brazil shows that monetary policy
is yielding results, central bank president Alexandre Tombini
said on Wednesday, sounding more upbeat about policymakers’
progress in fighting stubbornly high prices.

In a speech to business executives in São Paulo, Tombini
reiterated the bank will remain vigilant to bring the inflation
rate back to the 4.5 percent target by late 2016, and
guaranteeing “its stability for coming years.”

Jun 27, 2015

Brazil’s finance minister leaves hospital, will still fly to New York

BRASILIA (Reuters) – Brazilian Finance Minister Joaquim Levy told reporters he was “fine” upon leaving a Brasilia hospital early on Saturday, and a finance ministry spokesman said Levy had suffered a slight pulmonary embolism.

Levy, who took over the ministry in January and has led a bold fiscal adjustment plan to regain the trust of investors in the once-booming Brazilian economy, told reporters “everything is fine” from the back of a car outside Hospital do Coração. He gave no further details of his health.

Jun 25, 2015

Brazil narrows 2017 inflation target range in nod to markets

BRASILIA (Reuters) – Brazil on Thursday narrowed its inflation target band for 2017, the first change to the country’s official goal in 11 years in a bid to win over markets skeptical of the government’s commitment to curb persistently high inflation.

The national monetary council, made up of the finance and planning ministers and the central bank chief, kept the mid-point of the target at 4.5 percent in 2017, but set the tolerance band at 1.5 percentage points either way.

Jun 25, 2015

Brazil should set lower inflation target for 2017, economists urge: Reuters poll

BRASILIA (Reuters) – Brazil should stick to its inflation target next year and lower it in 2017 to rebuild its inflation-fighting credentials with weary markets, a wide majority of economists urged in a Reuters poll this week.

Brazil targets inflation for this and next year at 4.5 percent with a tolerance band of two percentage points, and is expected to announce later on Thursday its goal for 2017.

Jun 24, 2015

Brazil cenbank barely cuts 2016 inflation fcast, signals rate hikes

BRASILIA, June 24 (Reuters) – Brazil’s central bank barely
cut its inflation forecast for next year despite signs of a
prolonged economic slump, signaling it could charge ahead with
one of the world’s boldest rate-hiking campaigns to anchor price
expectations.

In its quarterly report released on Wednesday, the bank
lowered its 2016 inflation forecast to 4.8 percent from 4.9
percent previously. It sees annual inflation converging to the
4.5 percent center of the official target in the second quarter
of 2017.

Jun 18, 2015

Brazil decrees temporary fix to costly pension system

BRASILIA (Reuters) – Brazilian President Dilma Rousseff on Thursday offered a temporary fix to stem the tide of red ink from its generous pension system, but Cabinet ministers acknowledge that deeper reform to one of the main threats to its economy could take years.

Rousseff unveiled a new formula for progressively restricting Brazilians’ access to full pensions after vetoing a congressional bill that countered her efforts to reduce Brazil’s fiscal deficit.

Jun 11, 2015

Brazil central bank vows perseverance as inflation fails to subside

BRASILIA, June 11 (Reuters) – Brazil’s central bank on
Thursday vowed to prevent inflation from remaining high for the
long-term, signaling policymakers are not done yet hiking
interest rates and could keep them elevated for some time
despite fears of a recession.

In the minutes of its last rate-setting meeting last week,
the bank said “determination and perseverance” are needed to
prevent this year’s high inflation from extending into the
future.

Jun 9, 2015

Brazil’s Rousseff aims to lure $64 billion in infrastructure capital

BRASILIA (Reuters) – President Dilma Rousseff unveiled an effort to draw 198.4 billion reais ($64 billion) in private investment to build, upgrade and operate Brazilian roads, railways, airports and harbor terminals.

The infrastructure plan is meant to restore growth to Brazil’s faltering economy and raise Rousseff’s popularity, which has been battered by high inflation, rising unemployment and a corruption scandal at state-run oil company Petrobras.

Jun 4, 2015

Brazil raises interest rates again, signals more hikes

BRASILIA, June 3 (Reuters) – Brazil raised interest rates to
the highest levels in more than six years on Wednesday,
extending a tightening campaign and leaving the door open for
more hikes despite concerns that steep borrowing costs could
deepen an expected economic recession.

The central bank’s monetary policy committee, known as
Copom, decided unanimously to hike its benchmark Selic rate by
50 basis points to 13.75 percent as expected by an overwhelming
majority of market players. It is the highest Selic rate since
January 2009.

Jun 3, 2015

Brazil set to raise interest rates again despite recession fears

BRASILIA, June 3 (Reuters) – Brazil is poised to raise
interest rates by 50 basis points on Wednesday for the fifth
straight time, maintaining its tight money campaign to battle
inflation despite fears it could worsen an expected economic
recession.

Forty-eight of the 49 economists surveyed by Reuters last
week expect the central bank’s monetary policy committee, known
as Copom, to raise its benchmark Selic rate to
13.75 percent, bringing borrowing costs to a six-year high. The
only dissenting economist sees a rate increase of 25 basis
points.

    • 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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