Latest news with #taxasdejuros
Bloomberg
01-07-2025
- Business
- Bloomberg
Higher Loan Rates in Brazil Threaten Tractor Sales Rebound
Brazil has raised interest rates on farm equipment financing, threatening to constrain a much-needed recovery in tractor sales. Borrowing costs under a key government credit line were boosted by 2 percentage points to as much as 13.5% a year, the Brazilian agriculture ministry said Tuesday. The move should have a 'downward bias' on domestic tractor sales projections, according to Pedro Oliveira, head of a farm equipment sector chamber at industry group Abimaq, which represents manufacturers including Deere & Co.
Reuters
27-06-2025
- Business
- Reuters
Brazil central bank sees rate cut debate as premature, says official
June 27 (Reuters) - Brazil's central bank is not currently discussing potential interest rate cuts, director Diogo Guillen said on Friday, reaffirming that policymakers remain focused on bringing inflation back to target over the relevant horizon. "That seems like a very distant debate," he said at an event hosted by Barclays in Sao Paulo, adding it would be "far too premature" to talk about what might lead the bank to ease borrowing costs. Earlier this month, the central bank raised its benchmark interest rate by 25 basis points to 15%, a near two-decade high, and signaled it expects to hold it steady for a "very prolonged" period. Guillen said the pause was announced to assess whether the cumulative 450-basis-point increase since September had been enough. "As the cycle evolves, you reach a more contractionary interest rate level, which also allows more time to observe the lagged effects (of monetary policy)," he added. Guillen also emphasized that the central bank is targeting the midpoint of the inflation goal, set at 3%, and aims to reach it within the relevant monetary policy horizon, which currently extends to the fourth quarter of 2026. Brazil's economy has "undoubtedly" shown resilience, but there are signs of a slowdown in growth, he added. Guillen said that the debate over the reasons behind recent economic strength involves several hypotheses involving stronger consumption, credit expansion, labor market dynamics and the effects of social benefits.
Reuters
26-06-2025
- Business
- Reuters
Brazil central bank stands by inflation target despite forecast gap
BRASILIA, June 26 (Reuters) - Brazil's central bank remains "absolutely" committed to pursuing its 3% inflation target, its governor said on Thursday, despite the bank having signaled it will hold rates even as projections show inflation staying above the goal through 2027. Speaking at a press conference, Gabriel Galipolo said the central bank's projections take into account the expected interest rate path reflected in the median estimates from private economists in the Focus survey its conducts weekly. However, he emphasized that this path does not necessarily represent the rate trajectory the bank will follow. "There are several paths to reach the center of the target," he said. "We are absolutely committed to it." Last week the central bank raised its benchmark interest rate by 25 basis points to 15%, a near two-decade high, and signaled a "very prolonged pause" in its efforts to tame consumer prices. In their policy statement, policymakers had also emphasized they would not hesitate to resume rate hikes if needed. Galipolo said on Thursday the monetary authority would assess a broad set of indicators, rather than any single metric, when evaluating whether to opt for a new rate increase. Earlier in the day, the central bank's quarterly monetary policy report projected annual inflation at 3.2% by the end of 2027, still above the 3% target, which has a tolerance band of 1.5 percentage points in either direction. For the fourth quarter of 2026, the relevant horizon for current policy decisions, annual inflation is seen at 3.6%. In the same press conference, economic policy director Diego Guillen stressed that the central bank was not extending the horizon to meet its inflation target. Galipolo also said that this week's foreign-exchange interventions were aimed at addressing a specific issue related to coupons, and did not signal any change in the bank's currency policy.
Reuters
13-06-2025
- Business
- Reuters
Brazil central bank to hold interest rates at 14.75% on June 18, economists say: Reuters poll
BUENOS AIRES, June 13 (Reuters) - Brazil's central bank is expected to keep its benchmark rate unchanged at 14.75%, its highest in nearly two decades, on June 18 and also remain data-dependent for upcoming decisions, a Reuters poll of economists showed. The consensus view shifted from a poll in May, when a majority of analysts who answered extra questions on the next move by Banco Central do Brasil (BCB) said they expected a 25 basis point hike in June. It would be the first pause after the BCB raised its Selic rate six consecutive times by a total of 425 basis points to its highest since July 2006. At the end of next week's two-day meeting, policymakers will also probably reiterate their concerns about still-elevated inflation, while noting some moderation in consumer prices amid heightened uncertainty. The decision should maintain the considerable spread of more than 10 percentage points over U.S. rates, a gap that has helped strengthen Brazil's currency but is weighing on economic growth. The bank's monetary policy committee, known as Copom, will hold the Selic rate steady, according to a majority of 27 economists of 39 polled June 9-12. Twelve predicted a 25 basis-point increase to 15.00%. "Copom is expected to keep the Selic stable at 14.75% at this meeting, but with a very cautious tone, possibly leaving the doors open to raising rates again in the future," said Robson Pereira, chief economist at Brasilprev. "The statement should acknowledge that since the last meeting, there has been a reduction in the risks of an imminent global recession but also that the level of uncertainty remains very high." Brazil's inflation rate slowed more than forecast last month. However, the 12-month gauge came in at 5.32%, surpassing again the central bank's target of 3% plus/minus a margin of 1.5 percentage points. Last week, Gabriel Galipolo, BCB's governor, said the bank was keeping its options open into June's policy meeting, in line with its decision in May to drop any forward guidance on policy. Asked in the latest survey what the next move would be, all 29 respondents to the extra question called for a rate cut. Ten expected an easing in January 2026, six in December 2025 and the rest in other months. In response to another extra question on the size of the possible reduction in the cost of borrowing, a slight majority of 16 predicted a 25 basis-points cut and the other 13 a half-percentage point move. The Selic will stay at 14.75% until year-end, and then fall to 14.00% in the first quarter of 2026, closing next year at 12.00%, medians in the poll showed. (Other stories from the Reuters global economic poll)
Bloomberg
19-05-2025
- Business
- Bloomberg
Galipolo Vow on Higher-for-Longer Brazilian Rates Boosts Bets on Cycle's End
Central bank President Gabriel Galípolo said Brazil needs interest rates to remain at a very restrictive level for longer, boosting investors' bets that policymakers could stop the current tightening cycle at their next meeting in June. The bank has front-loaded monetary policy and now it's logical to keep it tight for a longer period of time, Galípolo said during an event Monday in São Paulo organized by Goldman Sachs Group Inc.. The governor also said Brazil isn't even close to debating an inflection in monetary policy.
