Brazil’s economy shrank in the third quarter more than analysts forecast as above-target inflation, deteriorating fiscal accounts and rising interest rates sapped confidence and crimped investment. Swap rates fell.
The Brazilian central government’s budget surplus before interest payments narrowed to a four-month low in November, signaling the government is likely to miss its fiscal target this year.
"If future inflation numbers come in less than expected, that might allow the central bank to hold off on further rate increases."
- Jankiel Santos on Nov 19, 2014