The Brazilian real fell today as analysts revised down their outlook for Brazilian borrowing costs, even though forecasts for economic growth and consumer inflation remained steady. Some indicators, including industrial output, were bad enough to warrant lower interest rates.
Problems of the global economy make economists revise their expectations for borrowing costs in various countries and Brazil was not an exception. Experts cut their forecast for Brazil’s main interest rate (called Selic) to 7.63 percent by the end of 2013 from the previous estimate of 7.75 percent. The forecast level is still above the current rate of 7.25 percent. Speculators do not expect Brazil’s central bank to raise the Selic rate until May.
USD/BRL rose from 2.0313 to 2.0343 as of 13:15 GMT today.
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