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.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam