Brazil’s unemployment rate in December fell to a record low, adding inflation pressure even as the central bank continues raising interest rates. Swap rates rose.
The jobless rate fell to 4.3 percent from 4.6 percent in November, the national statistics agency said in Rio de Janeiro today. That was lower than forecast by 31 economists surveyed by Bloomberg, whose median estimate was 4.4 percent.
Joblessness remained near record lows all last year and helped stoke inflation, which exceeded the government’s target for the fourth straight year. The central bank has responded by raising the benchmark rate in seven successive monetary policy meetings. Today’s data reinforce the likelihood of another 50 basis-point increase, according to Neil Shearing, chief emerging-markets economist at Capital Economics Ltd.
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