Thursday, July 24, 2008

Brazil raises 75bp

Brazil raised rates last night 75bp, which was on the higher end of expectations. The market was looking for 50bp (as was I) with a few looking for 75bp.

The Policy Makers led by President Henrique Meirelles are signalling that there is more to come.

Policy makers led by President Henrique Meirelles raised the overnight rate by three quarters of a percentage point to 13 percent last night to bring inflation back to target in a ``timely fashion.'' Thirty-one of 45 economists surveyed by Bloomberg News predicted a half-point increase as in the two previous meetings.

Markets are subdued with spot opening and trading basically 1 figure lower then yesterdays close.

Good Luck and Good Currency Trading

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