Brazilian consumer prices rose at the fastest pace in nine months in January on higher transport, food and drink costs, reinforcing bets the central bank will miss its year-end inflation target as the economy rebounds.
Brazilian interest-rate forecasts by economists and traders are diverging by the most this year. Recent history shows traders are more accurate predictors of the country’s monetary policy.
Brazilian swap rates declined to a seven-month low as evidence of a weakening economy added to speculation that policy makers will limit further increases in borrowing costs.
"Traders are operating mostly on expectations of what the next polls will bring."
- Solange Srour on Sep 23, 2014