Analysts covering Brazil’s economy cut their forecast for the year-end benchmark rate for the first time since November after the central bank’s split decision last week eased predictions of a steeper tightening cycle.
Egypt increased deposit agreement sales by 64 percent today as the central bank seeks to absorb excess funds before a government report that may show inflation accelerated. The benchmark eurobonds advanced.
Cyprus’s bailout threatens to slow eastern European growth through trade and banking links if it sparks capital flight from the most indebted euro-area nations, the European Bank for Reconstruction and Development said.
Hungary’s central bank will start a 500 billion-forint ($2.1 billion) program to boost lending to help end a recession and plans to use foreign-currency reserves to cut the country’s short-term external debt. The forint rose.
Romania’s call for a credit-rating upgrade has the support of investors and analysts from London to Los Angeles as the country strives to shake off its junk status at Standard & Poor’s after almost five years.
Hungary’s new central bank president, Gyorgy Matolcsy, may back “more radical options” to reduce foreign-currency debt as he seeks to boost the economy with unconventional steps, Capital Economics Ltd. said.