Brazil will raise interest rates less than traders expect as the Federal Reserve’s easing cycle provides a ‘Goldilocks’ scenario for risk assets, according to the head of Latin America economic research at JPMorgan & Chase Co.
Brazil’s central bank is set to start lifting interest rates on Wednesday just hours after the Fed begins to lower its rates to shore up the economy. Policymakers will hike borrowing costs 25 basis points, taking a hawkish stance to reassure investors about their commitment to bringing inflation back in line with the target, Cassiana Fernandez said in an interview in London. She expects them to lift the benchmark Selic by 100 basis points to 11.5% by January, before resuming rate cuts by mid 2025.
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Publish date : 2024-09-16 13:00:00
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