Banks from JPMorgan Chase & Co. to Banco Itau BBA SA are opening offices and hiring in Mexico, Colombia and Peru as Brazil’s share of the Latin American investment-banking fee pool falls to a record low.
Brazil’s real gained along with stocks as companies made winning bids worth $9.1 billion to operate two of the nation’s busiest airports, agreeing to pay almost four times the minimum amounts set by the government.
Brazil’s central bank said its current pace of interest rate increases remains appropriate to ensure inflation slows, prompting Latin America’s biggest bank to forecast the benchmark rate will go to 10 percent next month.
Brazil’s economy probably expanded at the fastest pace in President Dilma Rousseff’s tenure in the second quarter, a clip analysts forecast is unsustainable as the central bank raises interest rates and the currency plunges.
Brazil’s central bank raised the benchmark interest rate a third consecutive time and said it was giving continuity to the world’s biggest tightening cycle, signaling increases may be extended through year-end as policy makers battle inflation.