Brazil’s economy expanded at the slowest pace in a year in the last quarter of 2010, cementing expectations the central bank may pause after raising interest rates in April.
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 formal job creation in May was the lowest for the month since 1992, as economic growth slows in the world’s second-largest emerging market.
Brazil’s broadest measure of inflation in June eased from the previous month as iron ore prices rose at a slower pace, and food prices fell.
Brazil will grant exporters of manufactured goods tax breaks to partially offset this year’s currency appreciation, as part of a group of measures to boost growth, Finance Minister Guido Mantega said.
Brazil’s central bank President Alexandre Tombini said demand at daily swap auctions has eased, signaling the bank may scale down or end the program that aimed to support the real.
"There has been a deterioration in economic fundamentals."
- Newton Rosa on Aug 28, 2014