Brazil’s swap rates fell after economists cut their outlook for economic growth, adding to speculation that the world’s biggest increases in borrowing costs are approaching an end.
Swap rates on contracts maturing in 2015 dropped three basis points, or 0.03 percentage point, to 10.48 percent at 9:44 a.m. in Sao Paulo. The real appreciated 0.1 percent to 2.3281 per U.S. dollar.
Economists lowered their growth forecast for this year to 2.30 percent from 2.35 percent a week earlier, according to the median of about 100 estimates in a central bank survey published today. Policy makers have raised the target lending rate by 2.75 percentage points since April to 10 percent to curb inflation, the most among 49 central banks tracked by Bloomberg.
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