Brazil will cut 44 billion reais ($18.5 billion) from this year’s budget, as policy makers seek to rein in inflation and shore up fiscal management that has sparked warnings of a rating downgrade. Swap rates fell.
On the heels of last week’s decision by the Federal Reserve to trim stimulus, central banks in Europe will probably maintain a steady course this week. The European Central Bank and the Bank of England will hold their key rates at record lows, according to economists surveyed by Bloomberg. The Reserve Bank of Australia will also keep its benchmark rate at a record low.