Easy Brazil Investing

Tag: Inflation

  • Brazilian Economy shrinks 0.51% in May, according to the Central Bank

    The Brazilian economy has not confirmed the brief improvement in April. The Economic Activity Index Central Bank (IBC-Br) fell 0.51% in May, after growing 0.07% in April (revised), which was the first increase in 15 months. In the year, the decline was a significant 5.79%. In the 12 months ending in May, the IBC-Br indicates…

  • EWZ: Ibovespa has its best semester since 2009 and US$ drops 18.6% versus the Brazilian Real

    Brazilian’s most traded stock ETF in the US, EWZ soared 46.5% in the same 6 months: In the beginning of the year, the perspective for the Brazilian market was not good with the country in recession and inflation sky rocketing. However, in the middle of February, the inflection started fueled by a global recover in…

  • What to Expect for Brazilian Interest Rate in 2016

    Monetary Policy Committee (COPOM) has decided to keep the Brazilian interest rate benchmark in Brazil (SELIC) at 14.25% a year, unanimously. The central bank repeated the note issued with the previous decision, in which it says “we see advances in the inflation fighting but the still elevated cost of living and expectations are out of the target”.…

  • Brazil’s Inflation Unexpectedly Slows as Recession Bites

    Brazilian inflation unexpectedly slowed last month, beating forecasts from all analysts surveyed by Bloomberg, as food prices rose less than in the previous month amid a deepening recession.The benchmark IPCA inflation index moderated to 0.96 percent in December from 1.01 percent in November, the national statistics agency said Friday. That compares to the median 1.05…

  • Central Bank in Brazil Forcasts 2016 Inflation Above Target Ceiling

    While there was a consensus among financial analysts that consumer inflation in Brazil would top ten percent this year, the latest report by the Central Bank (CB) shows that analysts’ forecasts for 2016 inflation are also above the target limit of 6.5 percent. According to financial institutions surveyed by the CB for its Focus Report,…

  • Brazil Bull Who Got It Right in 2002 Says This Time No Different

    The selloff punishing Brazilian markets in recent months isn’t fazing Jerome Booth. He’s seen it before and says just like then, it’s way overdone.Yes, Brazil has serious problems. The country’s “a mess,” he says, with a massive corruption investigation at state-run oil company Petroleo Brasileiro SA, a worsening fiscal outlook, the steepest recession in 25…

  • Brazil downgrade leaves little choice but austerity for Rousseff

    Brazil’s government scrambled yesterday to reassure investors it will impose austerity measures to put public finances in order after its credit rating was downgraded to junk status. President Dilma Rousseff called an emergency cabinet meeting to brainstorm on policies to bridge a fiscal shortfall and how to win their approval by a Congress that has…

  • Brazil downgraded by S&P – loses investment grade

    Standard & Poor’s stripped Brazil of its investment-grade credit rating on Wednesday, making it even harder for President Dilma Rousseff to regain market trust and pull Latin America’s largest economy out of recession. The faster-than-anticipated downgrade, which will likely hit Brazilian financial markets on Thursday, is a major setback for Rousseff as she tries to…

  • Brazil’s GDP contracted 2.6% in Q2 2015 from a year earlier, worse than expected

    The Brazilian GDP (Gross Domestic Product) fell by 1.9% in the second quarter of 2015 compared to the first quarter of 2015, according to IBGE (Brazilian Institute of Geography and Statistics) announced on Friday (28). On an year-over-year basis, the decline was 2.6%. The GDP in the 1st half of 2015 decreased by 2.1% compared…

  • Copom raises interest rate in 0.5% to 14.25% per year and indicates an stable rate in the near future

    As expected by the majority of the economists, the decision of the Central Bank was to raise the SELIC to 14.25% per year. The 0.5% increase is the seventh in the tightening cycle started last october. The raise was expected because the inflation is currently at the dangerously high levels, with the IPCA, the official…