The first decline in food prices in two years provided temporary assistance to Brazilian President Dilma Rousseff’s efforts to tame inflation being pressured by the biggest currency slide among emerging markets.
Brazil’s central bank may nominate RBS Securities Inc. senior economist Zeina Latif to its board and choose another economist from the financial industry to propose as well, Valor Economico newspaper reported , without saying how it obtained the information. Nominations to the board are subject to approval by Congress.
Traders are moving closer to betting Alexandre Tombini will be the first Brazilian central bank president in more than a decade to keep the benchmark interest rate unchanged at his first policy meeting.
Brazil’s current account gap will widen to a record $60 billion in 2011 from $49 billion in 2010, the central bank forecast today, as domestic demand and the real’s rally boost spending on imports and overseas travel.
Brazil’s consumer prices will rise this year and next more than analysts previously expected, according to a central bank survey, adding to pressure for policy makers to resume interest rate increases early next year.