Brazil seen keeping rates on hold despite inflation outlook

Alonso Soto – Reuters, 10/21/2015

Brazil’s central bank will likely keep interest rates steady on Wednesday for the second straight meeting, aiming to avoid further harm to an economy mired in recession despite a recent jump in inflation expectations for next year.

All 48 economists surveyed by Reuters last week expect the central bank to hold its benchmark Selic rate at a nine-year high of 14.25 percent.

Keeping rates on hold would give a breather to President Dilma Rousseff, who is fighting for her political survival amid the worst economic and political crisis since Brazil returned to democracy three decades ago.

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