BRASILIA, March 26 (Reuters) – Brazil’s central bank
signaled on Thursday it will continue to raise interest rates as
it expects inflation to remain too high next year despite a
In its quarterly report, the bank raised its inflation
forecast to 7.9 percent in 2015, acknowledging it will surpass
the official target range of 2.5 percent to 6.5 percent for the
first time since 2003.
BRASILIA, March 18 (Reuters) – The Brazilian central bank
has little room to continue with its currency swap program
because it is running out of ammunition to counter a weakening
real, a senior government official told Reuters on Wednesday.
The weaker real is a key factor supporting the
economy, which could very well contract this year as investments
dwindle, said the official, who is directly involved in economic
policymaking but declined to be identified because he was not
authorized to speak publicly.
BRASILIA, March 18 (Reuters) – At the start of the year, few
would have guessed that a “Chicago Boy” economist would win over
Brazil’s leftist president, Dilma Rousseff.
But that’s precisely what her new finance minister, Joaquim
Levy, appears to be doing.
BRASILIA (Reuters) – The Brazilian government is analyzing a proposal to tax inheritance transfers instead of wealth as a way to increase revenues, Planning Minister Nelson Barbosa said on Tuesday.
The finance ministry is analyzing the proposal, and no decision has been made, Barbosa said in congressional testimony. He signaled that the government is not considering taxation of large fortunes as lawmakers from the ruling Workers’ Party are demanding.
BRASILIA, March 13 (Reuters) – Brazilian authorities will
not bow to market pressure to increase support for the real
despite the currency’s sharp sell-off on Friday, four government
sources told Reuters.
The real weakened nearly 4 percent on Friday, hitting
3.28 per dollar, its weakest level since April 2003, due a surge
of the dollar abroad and amid growing political uncertainty
stemming from a corruption scandal at state-run oil company
RIO DE JANEIRO/BRASILIA, March 9 (Reuters) – Brazil and
Mexico agreed on Monday to keep a cap on their bilateral auto
trade nearly unchanged, in a victory for the South American
nation to shield its struggling car industry and limit its trade
Both countries set the quota of exports of light vehicles
between them at $1.56 billion for the first year, increasing 3
percent annually until the treaty expires in 2019, Brazil’s
foreign ministry said. Exports above that limit will carry a
tariff of 35 percent.
BRASILIA (Reuters) – Brazil raised interest rates on Wednesday to the highest level in six years, maintaining its aggressive pace of monetary tightening to fight inflation despite fears the economy is slipping into a deep recession.
The bank’s monetary policy committee, known as Copom, voted unanimously to hike the benchmark Selic rate BRCBMP=ECI by 50 basis points for the third straight time. The move was expected by an overwhelming majority of economists and traders.
BRASILIA (Reuters) – Brazil President Dilma Rousseff on Wednesday raced to defuse a rebellion by legislators upset about her budget austerity plans and her handling of a corruption scandal at state-run oil company Petrobras.
Rousseff met with legislative leaders from her coalition after they unexpectedly threw out a presidential decree that would have raised payroll taxes and helped close a gaping hole in Brazil’s budget.
MEXICO CITY/BRASILIA, March 2 (Reuters) – Mexico is willing
to extend an auto export quota pact with Brazil for up to two
more years, provided restrictions are eased when the current
agreement ends at midnight on March 18, an official familiar
with the talks said on Monday.
The accord, signed in 2012, limits the automotive trade
between Mexico and Brazil under an annual quota system.
BRASILIA/SAO PAULO, Feb 27 (Reuters) – Brazil’s
bigger-than-expected budget surplus showed on Friday that a new
finance minister was delivering on promises, but heavy job
losses underscored the likelihood that austerity would push the
economy back into recession.
2015 began with the heaviest layoffs in six years, according
to labor data on Friday, pushing unemployment to a one-year high
in a trend likely to further erode President Dilma Rousseff’s