BRASILIA/RIO DE JANEIRO (Reuters) – Brazil’s central bank risks causing unnecessary damage to a struggling economy if it raises interest rates even more in coming weeks, a growing number of economists and business leaders warn.
Central bank chief Alexandre Tombini has already increased the benchmark Selic rate by 3.25 percentage points since October, taking it to a whopping 13.25 percent even though the economy is expected to shrink at least 1 percent this year.
SAO PAULO/BRASILIA, May 21 (Reuters) – Economic activity in
Brazil tumbled in the first quarter and unemployment climbed to
a near four-year high, adding to signs of a painful recession
that could worsen as President Dilma Rousseff clamps down on
The central bank said on Thursday its IBC-Br economic
activity index dropped 0.8 percent in the first quarter from the
last three months of 2014, after sliding more than expected in
BRASILIA (Reuters) – For the last 20 years, Brazil’s largest political party has not once fielded a presidential candidate, instead content to partner with the eventual winner to retain a share of power. No longer, it appears.
The Brazil Democratic Movement Party (PMDB), which for many Brazilians epitomizes a self-serving political class living off pork barrel, is now pushing its own legislative agenda as it gears up to make a run for the presidency in 2018.
Brazil’s monthly inflation rate eased below 1 percent for the first time this year in April and inflation expectations for 2016 have dropped for the first time in two and a half months.
That should be welcome news for an economy heading into recession but which is caught in a strangehold of relentlessly rising prices going completely against a global trend.
BRASILIA (Reuters) – Industrial output in Brazil probably fell in March for a second straight month on falling auto and steel production, increasing expectations that Latin America’s largest economy will tumble into a recession.
Output from Brazilian factories and mines probably shrank by a seasonally adjusted 0.7 percent in March BRIO=ECI from the previous month, when it fell 0.9 percent, according to the median forecast of 26 economists in a Reuters poll.
At 13.25 percent, Brazil’s towering interest rate looks totally out of line at first glance.
The economy is slipping into its worst recession in 25 years; falling prices are spooking central banks around the globe; rates in Latin American peer economies are much lower, below 5 percent.
BRASILIA, April 28 (Reuters) – Brazil’s jobless rate rose to
a three-year high in March and wages fell at the sharpest pace
in more than a decade, data showed on Tuesday, as the economy
headed into a likely recession.
The unemployment rate in Brazil’s six largest cities
rose to 6.2 percent in March from 5.9 percent in the
previous month – the highest in three years, statistics agency
IBGE said, and in line with expectations.
BRASILIA, April 24 (Reuters) – Brazilian interest rates are
set to rise sharply again next week, a Reuters poll showed on
Friday, as the central bank attempts to boost its
inflation-fighting credentials even as signs of a recession
continue to grow.
Forty-two of the 48 economists surveyed in the poll expect
policymakers to raise the benchmark Selic rate by
50 basis points to 13.25 percent on Wednesday, giving Latin
America’s largest economy one of the highest interest rates of
any major country.
BRASILIA (Reuters) – Brazil’s monthly inflation rate probably eased in mid-April, underpinning government hopes that price rises are peaking after hitting decade-highs, a Reuters poll showed on Wednesday.
Consumer prices BRIPCA=ECI likely rose 1 percent in the month to mid-April, down from an increase of 1.24 percent in mid-March, according to the median forecast of 27 economists.
BRASILIA (Reuters) – Brazilian economic activity grew unexpectedly in February from the previous month, central bank data showed on Wednesday, but economists said the increase was too small to dispel forecasts for a recession this year in Latin America’s largest economy.
The Brazilian central bank’s IBC-Br economic activity index BRIBC=ECI, a gauge of farming, industry and services activity, rose a seasonally adjusted 0.36 percent from January, topping market expectations for a drop of 0.2 percent.