(Bloomberg) – Brazil’s central bank may alter the pace of increases in its borrowing costs, a board member said Wednesday, prompting interest rate futures to rise.
Most Read from Bloomberg
“It could speed up or it could slow down,” said economic policy director Fabio Kanczuk at an HSBC investor event. “Our 100 basis point pace is an indication, not a compromise. We will look at the new data and analyze it again. Things are changing all the time.
Brazil’s central bank has been the most aggressive in the world in raising interest rates, raising its Selic benchmark rate by 425 basis points since March to 6.25%. Those responsible for formulating monetary policy are fighting inflation that rises above the target, driven by the reopening of the economy and rising electricity costs. The monetary authority is expected to make its third consecutive increase of a full percentage point on October 27.
Swap rates on the January 2023 contract, which indicate investors’ expectations for monetary policy, increased 3.5 basis points in morning trading. It was the most negotiated contract in São Paulo.
Annual inflation in Latin America’s largest economy reached 10.25% in September. Central bankers see the current pace of adjustment as “more than enough” for inflation to return to target in 2022, Kanczuk said.
Those responsible for monetary policy point to annual inflation of 3.75% this year and 3.5% in 2022.
Nota Original:Brazil Central Bank Director Signals Rate Hike Pace Can Change
Most Read from Bloomberg Businessweek
Disclaimer: This article is generated from the feed and not edited by our team.