Brazil Economy Stagnates Ahead of Key Interest Rate Decision

Reported 7 months ago

Brazil saw stagnation in economic activity in April as the central bank prepares for a crucial interest rate decision, with indicators falling short of expectations. The slowdown follows a strong start to the year driven by domestic demand, but was hindered by factors such as reduced industrial production and retail sales, as well as lingering impacts of record floods affecting job workers in the south. Analysts predict a rate hold at 10.5% amidst concerns over inflation tolerance with upcoming changes in board members, potentially affecting household consumption and business investments.

Source: YAHOO

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