Optimism for Brazil Recovery Tempered by Inflation Concerns

Optimism for Brazil Recovery Tempered by Inflation Concerns

Brazil Economy & Policy Corporate & Sovereign Strategy

A Brazilian economic recovery is already underway, though growth levels of 4.0% are likely to bring inflation concerns and a rise in interest rates next year, say economists and corporate officials. “The growth rebound is already here. My concern is that it will work too well, and bring inflation concerns” says Marcelo Carvalho, senior economist at BNP Paribas, noting that Brazil is not doing enough on the supply side. With this, the reduction in interest rates by the central bank has likely com

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