Brazil’s swap rates fell after President Dilma Rousseff said yesterday that macroeconomic conditions allow lower borrowing costs.
The real stayed stronger than 2 per U.S. dollar a day after the central bank intervened in the foreign-exchange market to boost the currency and contain inflation, reducing the need for policy makers to raise rates. Lower borrowing costs will always boost investment and consumption, Rousseff said yesterday in a speech in Brasilia to mayors.
“Rousseff’s commentary should push down swap rates,” Alfredo Barbutti, an economist at Liquidez DTVM in Sao Paulo, said in a phone interview.
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