Brazil

Brazil hiked bank reserve requirements on time deposits to 20% from 15% and on cash deposits to 12% from 8%. Measures will take effect December 13 and an estimated BRL61 bln will be removed from the system. Central bank chief Meirelles…

We have long felt that the market was underestimating tightening potential in 2011, but it appears to be coming around to our view. Weekly central bank survey shows market is now looking for an end-2011 policy rate of 12.25%, up from 12.0%…

by Win Thin Brazil press is reporting that President-elect Rousseff won’t ask central bank chief Meirelles to stay on after she takes office January 1, and repeats earlier speculation of changes to the economic team.  We have been…

from earlier in the day by Win Thin Brazil press is reporting that President-elect Rousseff may replace central bank chief Meirelles after she takes office January so that she can exercise greater control over monetary policy.  We…

“It’s no use throwing dollars out of a helicopter,” Guido Mantega, the finance minister, said on Thursday. “The only result is to devalue the dollar to achieve greater competitiveness on international markets.” At a joint press…

by Win Thin No big surprise from Brazil’s decision to boost the IOF tax again on fixed income foreign investment to 6% from 4% previously.  Still, this is a pretty strong statement since it comes just two weeks after it was hiked to…

by Win Thin Brazil central bank starts its two day meeting Tuesday, and market is looking for rates to be kept steady at 10.75%.  Though rates are expected to remain steady through 2010, market is looking for tightening to resume next…

We have heard this de-coupling theme for quite a few years now. The theory is that high-growth emerging markets are becoming less reliant on the U.S. and therefore are immune to exogenous shocks from the U.S. The video from Russia Today TV…

This is a quote from a speech Federal Reserve Board Vice Chair Janet Yellen gave yesterday at the Annual Meeting of the National Association for Business Economics in Denver, Colorado (emphasis added): I noted previously--and it is now…

No big surprise from Brazil’s decision to boost the IOF tax on fixed income foreign investment to 4% from 2% previously. This is a pretty strong statement from the authorities that 1.70 is the line in the sand, and if USD/BRL continues to…