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Brazil Poised to Keep Rates on Hold as Inflation Remains High

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Brazil’s central bank will likely keep interest rates on hold for the seventh straight time on Wednesday, resisting pressure to lower borrowing costs amid a recession as inflation remains well above its official target.

All 43 economists surveyed by Reuters expect the central bank’s policy committee, known as Copom, to hold its benchmark rate at 14.25 percent, a near 10-year high.

A deepening recession and lingering political turmoil is renewing pressure on the central bank to start cutting borrowing costs to give a breather to local producers and consumers struggling with high rates and rising loan defaults.

Reuters

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
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 Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. 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.
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