Brazil

Brazil c bank chief - IMF deal 'insurance'

Brazil's central bank president, Henrique Meirelles, has said the new IMF loan deal would give Brazil cheap insurance against international market volatility. But officials said they did not intend to draw on a $14 billion loan package from the IMF…

Meirelles: Brazil interest rates will keep falling

Bank of Brazil president Henrique Meirelles said Friday, according to AE Brazil, that low inflation could mean interest rates will continue to fall from the current 19%. Speaking ahead of a sovereign debt conference at the Dallas Federal Reserve Bank,…

IMF praises Brazil's economy

The central bank of Brazil has said that the country amply met the targets agreed with the International Monetary Fund, according to Merco Press. The primary surplus in the first three quarters of 2003 reached just over 20 billion US dollars compared to…

Central bank of Brazil cuts base rate to 19%

Brazil's central bank announced on Wednesday 22 October that it cut the Selic base rate to 19 per cent after its two-day meeting, reports AE Brazil. A Copom statement said that the cut was made because inflation is falling into line with targets.

Brazil "wants $10 bln IMF loan insurance"

Reports in Brazil said Finance Minister Antonio Palocci was negotiating with the IMF to secure "insurance" of $10 billion in emergency funds in case of an international economic crisis, according to Reuters. Palocci said he felt that if Brazil were to…

Brazil's central bank halves economic forecast

The Banco Central do Brazil has slashed its forecast for economic growth by more than half for this year to 0.6%, according to the Financial Times. The central bank also said it expected year-end inflation to reach 8.9 per cent, down from previous…

Economy in Brazil contracts 1.4% in 2Q

Brazil suffered the largest contraction in its economy for five years in the second quarter of this year, according to Bloomberg News, as the largest government spending cuts on record and rising interest rates choked off demand.

Rates slashed in Brazil

The Central Bank of Brazil reduced its main lending rate to 22%. The cut of two and a half percentage points was the largest in more than four years, reports the Financial Times.

Arminio Fraga hedges his bets

Investors have been scrumming to get a piece of the action as Arminio Fraga, Brazil's ex-central bank governor and former employee of George Soros, is starting his own hedge fund. "It's going well," says Fraga, and great things are expected, according to…

Brazil c bank lowers reserve requirements to 45%

Brazil's central bank lowered bank reserve requirements on demand deposits by 15% on Friday. 8 August, according to Agencia Estado. The bank said that "the measure was possible because monetary policy has made inflation converge to targets".

Franco faces new accusations

Oh, this fickle world! Once praised by his compatriots for his hand in hauling Brazil out of the mire in 1997, and even named central banker of the year by Euromoney as a consequence, the tide has turned for Gustavo Franco.

Brazil c bank staff strike, trading system crashes

A strike on Wednesday 23 July saw workers stay away from the central bank of Brazil as employees protested at planned cuts to pension benefits, according to a Bloomberg report. In what was described as an unrelated event, the computer system for bond and…

Brazil's central bank faces 'weak' strike action

Workers vowed to paralyse Brazil's central bank and Finance Ministry during a strike of public workers on Tuesday. The action was described as "weak" with most employees going to offices as normal past handfuls of protestors who urged them to save their…

Brazil c bank to upgrade credit system in 90 days

The central bank of Brazil's upgraded credit information system will gather information about all loans above 5,000 reais (US$1,760), compared to a minimum of 20,000 reais in the current system, according to Business News America. It will also bring a…

Brazil adjusts inflation target upwards to 5.5%

Brazil revised its inflation target up on Tuesday 24 June to 5.5 per cent, reports Merco Press. The 2005 target was fixed at 4.5 per cent. Making the announcement, Brazilian Finance Minister Antonio Palocci emphasized that the government will keep…

Brazil may raise inflation target

Economists have said that Brazil is likely to raise its inflation target to a more realistic level which could allow the central bank more room to reduce interest rates, according to a report by Bloomberg.

Brazil's Financial Resilience

A new working paper from Ilan Goldfajn, Katherine Hennings and Helio Mori of the Brazilian Central Bank asks how Brazil has escaped more or less unscathed in recent financial crises. Few state banks and many foreign ones may be a factor they argue.

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