Brazil’s swap rates advanced after the central bank said that it would be appropriate to keep adjusting interest rates given persistent inflation.
Contracts due in January 2017 rose five basis points, or 0.05 percentage point, to 12.33 percent at 9:26 a.m. in Sao Paulo. The real advanced 0.2 percent to 2.3143 per dollar today, reaching the strongest level since Dec. 10.
The central bank, which slowed the pace of interest-rate increases to 25 basis points last month after six straight half-point adjustments, said in minutes of the meeting released today that it considers “appropriate the continuation of the adjustment of monetary conditions under way.” Policy makers have raised borrowing costs 350 basis points since April to 10.75 percent. Consumer prices jumped 5.65 percent in the year through mid-February, above the bank’s 4.5 percent target.
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