Brazil’s swap rates fell as economists forecast slowing inflation in January, adding to speculation the central bank will limit further increases in borrowing costs.
Swap rates on contracts maturing in January 2017 decreased four basis points, or 0.04 percentage point, to 12.71 percent at 10:11 a.m. in Sao Paulo. The real appreciated less than 0.1 percent to 2.4018 per U.S. dollar..
Inflation slowed to 0.61 percent in January from a decade high of 0.92 percent in the prior month, according to the median forecast of economists surveyed by Bloomberg before tomorrow’s report from the national statistics agency. To curb increases in consumer prices, the central bank lifted the target lending rate by 50 basis points on Jan. 15 for a sixth consecutive time, increasing it to 10.50 percent.
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