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Bruno Federowski

UPDATE 1-Brazil Oct inflation accelerates less than expected

07 Nov 2018

(Recasts throughout with details, context) By Bruno Federowski BRASILIA, Nov 7 Brazil's inflation rate accelerated less than expected in October, bolstering the case for the central bank to wait longer before hiking interest rates. Consumer prices tracked by the benchmark IPCA index rose 4.56 percent in the 12 months through October, government statistics agency IBGE said on Wednesday, barely above the 4.53 percent mid-October rate. Economists polled by Reuters had expected a 4.66 percent increase. Even that smaller-than-expected headline number likely overstates inflationary pressures. Much of the increase stemmed from higher food and energy prices, notoriously volatile categories which are not very sensitive to monetary policy. So-called core inflation, which strips the index of volatile components, is hovering around 3.5 percent, far below the central bank's 4.5 percent target for 2018 and 4.25 percent for 2019. That is likely to allow the bank to keep rates at an all-time low in the short term, adding support to an underwhelming economic recovery. The IPCA index rose 0.45 percent from September, IBGE said, compared to a median 0.55 percent estimate. Below is the result for each price category: October September - Food and beverages 0.59 0.10 - Housing 0.14 0.37 - Household articles 0.76 0.11 - Apparel 0.33 -0.02 - Transport 0.92 1.69 - Health and personal care 0.27 0.28 - Personal expenses 0.25 0.38 - Education 0.04 0.24 - Communication 0.02 -0.07 - IPCA 0.45 0.48 (Reporting by Bruno Federowski Editing by Chizu Nomiyama)

UPDATE 1-Brazil central bank sees inflation peaking in Q2 2019

06 Nov 2018

BRASILIA, Nov 6 The Brazilian central bank on Tuesday forecast that inflation is likely to peak in the second quarter of 2019 before easing towards its target, adding that underlying inflation was at "appropriate" levels.

Brazil's real rally already over after Bolsonaro presidential victory: Reuters poll

01 Nov 2018

BRASILIA The Brazilian real is expected to hold at its current level in the coming months, the latest Reuters poll showed, after the victory of far-right lawmaker Jair Bolsonaro in the presidential elections ended a currency sell-off.

UPDATE 2-Brazil holds rates as far-right victory allays fears of FX sell-off

31 Oct 2018

BRASILIA, Oct 31 Brazil's central bank on Wednesday held interest rates at an all-time low less than a week after the victory of far-right lawmaker Jair Bolsonaro in presidential elections allayed fears of a currency sell-off.

Brazil to wait longer before hiking rates after far-right victory: Reuters poll

29 Oct 2018

BRASILIA Brazil will likely hold interest rates at an all-time low this week and wait longer to raise them as far-right lawmaker Jair Bolsonaro's victory in the presidential election stems a currency selloff, a Reuters poll showed.

UPDATE 1-Brazil's inflation holds steady above target midpoint in mid-October

23 Oct 2018

BRASILIA, Oct 23 Inflation in Brazil unexpectedly held steady in mid-October above the midpoint of the official target, giving the central bank plenty of time to increase interest rates in the coming months.

Brazil's far-right Bolsonaro - No coalition politics in cabinet picks

10 Oct 2018

BRASILIA/SAO PAULO Far-right Brazilian presidential candidate Jair Bolsonaro vowed on Tuesday to appoint non-partisan ministers, breaking with the tradition of building cabinets through coalitions, as part of his bid to tackle graft in Latin America's largest economy.

Far-right candidate eyes Santander Brasil director for central bank -report

09 Oct 2018

BRASILIA/SAO PAULO, Oct 9 Far-right Brazilian presidential candidate Jair Bolsonaro, pushing to put business leaders in government roles, could invite the head of global markets at Santander Brasil SA to lead the central bank if current governor Ilan Goldfajn declines to stay, a newspaper reported on Tuesday.

Brazil markets soar on strong first-round vote for Bolsonaro

08 Oct 2018

BRASILIA/SAO PAULO Brazilian markets rose on Monday after far-right presidential candidate Jair Bolsonaro ran up a huge lead in the first round of voting, boosting investors' hopes that he will tackle a growing fiscal deficit and privatize key companies.

Bolsonaro transforms tiny Brazil party into congressional powerhouse

08 Oct 2018

BRASILIA Brazil's far-right presidential candidate Jair Bolsonaro turned his party from a footnote in a crowded Congress into a national behemoth on Sunday, underscoring a seismic shift in Latin America's biggest nation as voters raged against the political establishment.

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