Brazil’s shorter-term swap rates dropped after a report showed inflation slowed more than forecast, adding to speculation that the central bank will limit further increases in borrowing costs.
Swap rates on contracts maturing in January 2016 fell one basis point, or 0.01 percentage point, to 11.73 percent at 9:51 a.m. in Sao Paulo. The real appreciated 0.2 percent to 2.3520 per U.S. dollar.
The Getulio Vargas Foundation reported that consumer prices in Brazil’s seven biggest cities climbed 0.66 percent in the month ended Dec. 22 after rising 0.75 percent in the prior period. The median forecast of economists surveyed by Bloomberg was for a 0.73 percent increase. The central bank has raised the target lending rate by 2.75 percentage points since April, the most among 49 central banks tracked by Bloomberg.
Read full article…