Category: Macroeconomy/Finance

Information regarding Brazil’s finance sector and the country’s macroeconomy.

Brazil is now a country with very low real interest rates, according to Guedes

Brazil is transitioning to a world of normal interest rates, while consumer price inflation is below 4% and the central bank’s policy rate has been 5 per cent since October. As such corporate bond market has opened up and several large firms are retiring their overseas debt to borrow from the local market. Traditionally, bank lending to companies stood at an around 47 per cent a year, according to Anefac, an industry association.

Brazilian economic data glitch stirs concerns among analysts

Brazil’s economy ministry has revised its export figures for the second time in less than a week, casting doubt on key data releases and leaving analysts wondering whether they should still trust the reliability of Brazilian statistics. Doubts surfaced last week when the country’s currency was hit by central bank figures showing a sharp deterioration in Brazil’s current account balance in the period January to October, driven by a slide in exports.

Brazil reforms: has Jair Bolsonaro missed his moment?

The government’s plans to kick-start the economy risk being overshadowed by riots in Chile and political turmoil at home. As the window for passing major legislation ahead of 2020 municipal elections starts to close, Brazil-watchers are asking whether the Bolsonaro government can deliver on the rest of its reform programme or whether the country will again succumb to its perpetual habit of disappointing investors.