Brazil to Hold Rate as Inflation Collides With Fragile Recovery
March 6, 2013 by Avila Capital Markets, Inc.
Brazil is likely to keep its key interest rate at a record low for the third straight meeting, as policy makers are caught between a fragile economic recovery and faster-than-expected inflation.
The central bank board, led by President Alexandre Tombini, will maintain the Selic rate at 7.25 percent today, according to all 59 economists surveyed by Bloomberg. The decision follows news last week that Brazil’s gross domestic product grew less than economists estimated in the fourth quarter.
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