Daily Management Review

Possible Approval For Pension Reform & Easing Consumer Price Could Lead To ‘Lower Policy Rates’ In Brazil


08/28/2017


Economists look at the performance of various sectors in Brazil while several noted an increment, although the “price pressure” could be a harbinger for drop in interest rates.



The Brazilian finance authorities now have got space to introduce “lower policy rates” given the easing consumer prices in the country, think the economists, particularly “if Brasilia approved pensions reforms next month”. According to Digitallook:
“In non-adjusted terms, the country's IPCA-15 consumer price gauge rose by 0.35% month-on-month in August and by 2.7% year-on-year, according to IBGE”.
 
The said pace in the increment of “annual price” marked to be “slightly lower” than the previous month’s “2.8% clip observed”. However, the prints of August was able to match the economists’ expectations. The “transport fares and housing” rates accounted by Dearer showed an increment from July whereby rising “1.4%”, while the ethanol and gasoline costs also shot up by six percent. Meanwhile, the prices in the housing sector rose by one percent and “electricity tariffs” went up by “4.3%”.
 
Pantheon Macroeconomics’ Senior International Economist, Andres Abadia, considered that the “largest economy” of South America, under the “price pressures” remained “under wraps”, whereby the fall of interest could be predictable in case the congress put an approval on the reform of the “country's pensions in the next few months”. The possible month for this could arrive as soon as September.
 
He also admitted that a threat hovered by global risks, however, given the “fundamentals of the country's currency” one could say that it remained “relatively resilient” while facing “sharp risk-off events”. In his words:
“Looking ahead, headline inflation will edge higher over the coming months, but the weakness of the labor market, favorable base effects, and the stable BRL all suggest that the inflation rate will hover around only 3%. With inflation low, political risks in check—at least for now—and recent progress on the fiscal front, we think the BCB will cut rates to 7.25% by the end of the year.”
 
 
 
References:
www.digitallook.com







Science & Technology

Scientists Discover Largest Ever Under Water Volcanic Eruption Near New Zealand

Bitcoin craze increased load on the power grid to the maximum

PC And Server Performance Slows Down Due To Security Patches For Chip Flaws, Says Microsoft

Cybersecurity Firm Claims Cryptocurrency Monero Might Be Getting Funneled To North Korea University

The Way We Travel Will Be Changed by The Colorless, Odorless Gas - Hydrogen

EU's Big Change In Data Protection Rules Makes Businesses To Get Ready For It

Artificial Intelligence Helps NASA Find An 8th Planet In Orbit Of A Distant Star

Australian Research Success Could Mean Shatterproof Cell Phones Could Soon Be A Realityv

Top ten hi-tech events of the year

Tesla Considering Designing And Developing AI Chips On Its Own To Support Its Auto-Pilot Project

World Politics

World & Politics

2017 Was Second Warmest Year Since Records Were Kept And It Had No El Nino Effect

France and Germany want to reform the eurozone

Take and go away: new approach to refugees in Europe

Both The Korean Countries Will Come Together In Olympic Talks

Parties of Germany agreed on the migrants problem

Munich Re: Natural disasters caused record damage in 2017

High-Level Talks To Be Held Between North And South Korea In Over Two Years

Sexually Abusing Children Interests An Estimated 20,000 British Men, Shows Police Monitoring Of Chat Sites