Brazil Swaps Show Traders Boosting Wagers on Interest-Rate Cuts
- Real rises amid news that government pushing for reforms
- Swaps show wagers on rate cut to as low as 13.75% tonight
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Traders stepped up bets on interest-rate reductions in Brazil ahead of a meeting tonight at which policy makers are forecast to cut borrowing costs for the first time since 2012.
Swap rates on the contract maturing in January 2018, a gauge of expectations for interest-rate moves, dropped 0.07 percentage point to 11.92 percent Wednesday in Sao Paulo, reaching the lowest since November 2014. Brazil’s real rose 0.6 percent to 3.1690 per dollar.