BRASILIA/SAO PAULO (Reuters) – Brazil’s central bank on Thursday signaled it could slow one of the world’s most aggressive monetary tightening cycles, but warned that currency volatility could limit the impact of past interest rate hikes on inflation.
In the minutes from its last rate-setting meeting, the bank acknowledged that recent rate hikes had a lagging effect on inflation, which was interpreted as a hint that policymakers may not need to increase borrowing costs much more to tame prices.
Brazil’s central bank highlights lagging impact of monetary policy, suggesting it could slow the pace of rate hikes
SAO PAULO, Dec 4 (Reuters) – Growth in Brazil’s services
sector quickened to the fastest in 10 months in November, a
business survey showed on Wednesday, suggesting Latin America’s
largest economy could be recovering from a very weak third
HSBC’s Purchasing Managers Index for Brazilian services
rose to 52.3 in November from 52.1 in October on a
seasonally adjusted basis, at its highest level since January. A
reading above 50 indicates expansion.
SAO PAULO (Reuters) – Brazil’s economy contracted in the third quarter for the first time since early 2009 as a steep drop in investment showed flagging confidence in what was recently one of the world’s most attractive emerging markets.
The economy shrank 0.5 percent between July and September from the prior three months, government statistics agency IBGE said on Tuesday, missing forecasts in what has become a disappointing routine over the last three years. Gross domestic product had been expected to drop 0.2 percent, according to the median forecast of 40 economists polled by Reuters.