Brazil’s central bank said monetary policy requires caution amid a slower-than-expected recovery, signaling policy makers may refrain from increasing borrowing costs in April even as inflation quickens.
Brazil’s President Dilma Rousseff reaffirmed her commitment to contain price increases and said her earlier comment that anti-inflation policies shouldn’t sacrifice growth had been misinterpreted. Swap rates pared declines after the president’s comments.
Brazilian consumer prices rose in January at the fastest pace since April 2005, raising pressure on the central bank, which has said it will keep interest rates at a record low for a prolonged period. Swap rates rose.