Brazil’s swap rates declined after economists lowered their forecasts for economic growth, adding to speculation that the central bank will limit further increases in borrowing costs.
Swap rates on contracts maturing in January 2015 fell two basis points, or 0.02 percentage point, to 11.11 percent at 10:04 a.m. in Sao Paulo. The real appreciated 0.1 percent to 2.3952 per U.S. dollar.
Economists cut their their projection for 2015 gross domestic product growth to 2.2 percent from 2.5 percent the week before, according to the median of about 100 estimates in a central bank survey published today. Central bank president Alexandre Tombini said at an event in London that annual inflation will slow to about 5.7 percent in January from 5.91 percent last month.
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