Brazil’s inflation may surpass the upper range of the country’s target this year because of “inconsistencies” between monetary and currency policies, said Banco Santander SA’s chief economist in the country.
Luciano Coutinho oversaw a surge in lending as president of Brazil’s development bank that increased the country’s debt during the global financial crisis. Now he may need to help Dilma Rousseff restrain government spending when she becomes president.
Brazilian central bank board member Carlos Hamilton so disagreed with a surprise interest-rate cut in August that he slammed phones and stomped through hallways, according to three bank officials familiar with his reaction.
Brazil’s efforts to boost economic growth with the most aggressive interest rate cuts are driving away investors, reducing equity valuations to five-year lows and fueling the world’s biggest currency tumble.
Brazil’s state development bank is charging the least relative to the country’s benchmark interest rate in 18 months, a sign President Luiz Inacio Lula da Silva ’s successor may struggle to keep inflation in check.