Brazil’s central bank will likely call a halt to this year’s flurry of interest rate hikes on Wednesday as it responds to growing signs of a slowdown in Latin America’s largest economy. Brazil’s economy showed new signs of a slowdown on Tuesday as steelmakers slashed their growth forecasts, the country’s No. 1 airline scaled down its expansion plans and a new poll showed growing pessimism in the battered manufacturing sector
With annual inflation running above 7 percent, policymakers will be reluctant to start reducing the country’s lofty borrowing costs just yet and are expected by economists to leave the benchmark Selic rate at 12.5 percent.

Source: Reuters

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