President Dilma Rousseff is said to cut federal taxes according to a government official with knowledge of the decision, with cuts on basic foods in a bid to tame inflation, after a report showed today consumer prices rose more than analysts forecast for an eighth straight month.
Brazil’s swap rates climbed to a six-month high as a report showed annual inflation accelerated in February, fueling speculation the central bank will lift borrowing. Latin America’s biggest economy expanded 0.9 percent in 2012, its slowest pace in three years, the national statistics agency reported March 1
Tax cuts failed to kick-start the economy last year, in spite of weaker currency and lower cost borrowings. The Annual inflation grew to 6.31 percent and has exceeded the central bank’s 4.5 percent target for 30 months with economists forecast 2013 inflation at 5.7 percent.
The Gross Domestic Product (GDP) in Brazil expanded 0.60 percent in the fourth quarter of 2012 over the previous quarter. GDP Growth Rate in Brazil is reported by the IBGE.
Brazil currency “real” has rallied 5.5 percent against the dollar this year, with the central bank has swung between selling currency swaps to prevent the real from falling too quickly and offering reverse currency swaps to protect exporters by preventive excessive gains.
OGX Petroleo & Gas Participacoes SA (OGXP3) to LLX Logistica SA (LLXL3) surged yesterday as investors put faith in Esteves, whose BTG is the most profitable Brazilian bank and likes his chances of bringing back these companies on track and profitability.
Brazilian billionaire Eike Batista signed an agreement this week with Grupo BTG Pactual’s Andre Esteves to co-run a strategic and financial management committee for his six publicly traded companies. Esteves, 44, is worth $4.9 billion, according to the Bloomberg Billionaires Index with his fortunes derived mostly from his 22 percent stake in BTG Pactual.