Brazil Holds on Interest Rates as Inflation Nears 10 Percent

Brazil held interest rates steady at near-10-year high of 14.25 percent on Wednesday, but a cut is expected in the months ahead, said JPMorgan.

The country is struggling with a deep recession, with unemployment currently running at more than 11 percent.

But the Banco Central do Brasil has little room to move amid rampant inflation. Inflation rose to 9.32 percent in May, more than double the official middle of the Brazilian target range, on the back of rising government-controlled prices and a weaker real.

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.