Brazil’s shorter-term swap rates rose the most in a week after Correio Braziliense reported that President Dilma Rousseff won’t oppose an increase in borrowing costs as the central bank begins a two-day policy meeting.
Brazil’s economy grew at its fastest pace in 19 months in November, reversing a three-month contraction, as a recovery in consumer spending helped the world’s second-largest emerging market shrug off a global slowdown. Yields on interest rate futures rose.
Brazil’s economy may expand at the fastest pace in more than two decades in 2010, pushing inflation further above the government’s target this year and next, policy makers said in their quarterly inflation report .
Brazil’s economy grew at its fastest annual rate since 1995 in the first quarter, sending bond yields higher and cementing expectations that the central bank will raise interest rates 0.75 percentage point tomorrow to prevent overheating.