Brazil’s central bank President Alexandre Tombini said inflation will converge to the bank’s 4.5 percent target in the third quarter of 2013 even as new data showed the pace slowing less than expected.
Brazil’s industrial production rose for the second consecutive month in July, the first back-to-back increase in more than a year, cementing economist expectations that growth is accelerating as a result of stimulus measures.
The cheapest Brazil inflation-linked bonds in 14 months are prompting Bank of America Corp. and SulAmerica Investimentos to recommend the debt on concern President Luiz Inacio Lula da Silva’s successor will fail to keep consumer prices in check.
Brazilian traders are paring bets on interest-rate increases by the most in six weeks on speculation President Dilma Rousseff will propose a budget cut big enough to help bring inflation down from a two-year high.
Argentine dollar-denominated bonds due in 2012 are being recommended by Bank of America Corp. as the government prepares to make a $2.2 billion payment today, leaving 25 percent of the total issue outstanding.