Brazil likely to hike rates as inflation risks rise on weak real

REUTERS, 7/29/2015 

Brazil’s central bank is widely expected to raise its policy interest rate on Wednesday after a steep cut in fiscal savings targets weakened the real currency and stirred doubts about the government’s commitment to help contain price increases.

The Brazilian real has slid more than 4 per cent against the U.S. dollar to its weakest in 12-years since the less ambitious targets were unveiled a week ago. The sharp depreciation has intensified inflationary pressures by making imports more expensive.

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