Tag Archives: Brazilian Central Bank

Brazil’s banks face paradox of worsening asset quality in a deleveraging corporate sector

Brazil’s banks are facing an apparent paradox: the level of corporate leverage has improved markedly in the past year while delinquency levels have risen and non-performing loan (NPL) formation remains at high levels. These are the main findings of a … Continue reading

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Brazilian government to press ahead with reform of TJLP

The Brazilian government is resisting pressure to reconsider its proposal to change how BNDES, the state development bank, charges interest rates to lenders. The government has written a bill that will phase out the current long-term TJLP rate – which … Continue reading

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Why a failure to raise Selic would be terrible news for Brazil.

  There are two reasons why the Brazilian Central Bank might surprise the market on Wednesday and hold Selic steady at 14.25% – but a failure to raise interest rates would spell very bad news for the economy. On Wednesday … Continue reading

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Central banking policy: beyond inflation, Brazilian style

With all the recent talk of Ben Bernanke’s recent new unemployment rate-related and GDP growth focused-monetary policy mandate for the Federal Reserve, and comments from soon-to-be Bank of England governor Mark Carney  reinforcing this shift away from myopic inflation-targeting, it is perhaps … Continue reading

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