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.
"The central bank's bet on help from fiscal policy is fundamental to understand its parsimony."
- Jankiel Santos on Dec 11, 2014