Brazil’s central bank signaled it will continue to cautiously cut interest rates to bolster a sluggish economy, as Europe’s debt crisis worsens and inflationary risks remain low. Interest rate futures fell.
Brazil’s central bank signaled it will extend the world’s biggest interest rate increase after last year’s surge in consumer prices made slowing inflation a greater concern to policy makers than reviving economic growth.
Brazil’s consumer prices in 2013 exceeded every analyst estimate and accelerated from last year, boosting pressure on the central bank to extend the world’s biggest cycle of raising interest rates. Swap rates increased.