World Economy

Brazil to Keep Rates on Hold

Brazil to Keep Rates on HoldBrazil to Keep Rates on Hold

Brazil’s central bank will likely keep interest rates on hold for the seventh straight time on Wednesday, resisting pressure to lower borrowing costs amid a recession as inflation remains well above its official target. All 43 economists surveyed by Reuters expect the central bank’s policy committee, known as Copom, to hold its benchmark rate at 14.25%, a near 10-year high. A deepening recession and lingering political turmoil is renewing pressure on the central bank to start cutting borrowing costs to give a breather to local producers and consumers struggling with high rates and rising loan defaults.