Business · Economy · 1 day ago

September inflation tops expectations, raising doubts over Brazil rate cuts

September inflation tops expectations, raising doubts over Brazil rate cuts

Brazil recorded inflation of 0.82% in September, higher than expected.

The rise pushed the IPCA, the country’s broad consumer price index, above the ceiling of its target range again.

The result has raised concern in financial markets about whether cuts to the Selic, Brazil’s benchmark interest rate, will continue.

Lower interest rates can make borrowing cheaper, while inflation above the target ceiling puts pressure on policymakers to control price rises.

The immediate question is whether interest-rate cuts will continue in November.

The available information does not say what decision will be made.

Sources

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