With Brazilian inflation likely to continue at "worrisome" levels, the country's central bank will find itself obliged to begin a cycle of interest rate hikes beginning toward the end of 2013, according to economists at BES investment bank. "Upward pressure on the IPCA [official inflation rate] seems to be a widespread process," they say in a note. Brazil's 12-month inflation rate is currently running at 5.64%, well above the government's target of 4.5%. BES forecasts a series of rate hikes beginning in the fourth quarter of 2013, bringing the Selic base rate up to 8.5% from its current 7.25%.
Find us on Google+
No comments:
Post a Comment