Interest Rates Raise in Brazil Not Likely: Credit Suisse

A hike in Brazil’s interest rate is not expected during 2008, according to Credit Suisse. “The current balance of risks for inflation is compatible with stable interest rates,” says CS. The balance has improved following the release of the January IPCA inflation result at 0.54% month-on-month, which came in below market expectations and in line with forecast. The bank maintains its expectation of interest rate stability up to Q3 2008 and a decline in Q4 2008.