March 14, 2022

Brazilian real leads declines in Latam with eyes on rate move

Featuring Rachel Ziemba

Source: Reuters

Journalist Shreyashi Sanyal

A Reuters poll sees the central bank raising its key rate by 100 basis points on Thursday and evaluate an escalation of its already aggressive policy tightening as red-hot global commodity prices stir up domestic inflation.

"They've (Brazilian Central Bank) already done a lot of hiking and a lot more is priced in but that also adds to the uncertainty because where some sectors, including export, can be beneficiaries, the net result and weakness of domestic demand is something that continues to be a concern," said Rachel Ziemba, founder of Ziemba Insights.

Central banks in the United States, Turkey, Indonesia, and Russia will also be meeting this week.

Read the full story and more from Reuters.

Authors

  • Rachel Ziemba

    Adjunct Senior Fellow, Energy, Economics, & Security Program

    Rachel Ziemba is an Adjunct Senior Fellow at the Center for a New American Security (CNAS). Her research focuses on the interlinkages between economics, finance and security i...