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.
Sul America SA , the Brazilian insurer part-owned by ING Groep NV , has 800 million reais ($500 million) for acquisitions in the South American country to tap growing demand for insurance, two executives said.
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.
Brazil’s swap rates climbed as a weakened currency and better-than-forecast industrial output added to speculation that the central bank will sustain the pace of increases in borrowing costs to curb inflation.