Latest news with #BrazilEconomy
Yahoo
26-06-2025
- Business
- Yahoo
PagSeguro (PAGS) Jumps 10.18% as Brazil Central Bank Likely to Pause Rate Hikes
We recently published . PagSeguro Digital Ltd. (NYSE:PAGS) is one of the stocks that soared higher on Tuesday. PagSeguro Digital rallied for a second day on Tuesday, adding 10.18 percent to close at $9.96 apiece as investor sentiment was likely buoyed by the Brazil central bank's announcement that it would now pause from interest rate hikes after pulling the trigger for the 7th straight increase last week. Last Wednesday, the central bank raised its benchmark rates by 15 percent or 0.25 basis points in an effort to curb inflation. A businessperson standing in front of a brick-and-mortar establishment using a tablet to process an in-person payment. The rate, known as the Selic, is one of the highest in the world and is at its highest level since 2006. The announcement to pause hikes next Monetary Board meeting bolstered sentiment for PagSeguro Digital Ltd. (NYSE:PAGS) on optimism that it would further buoy borrowing demand. In recent news, PagSeguro Digital Ltd. (NYSE:PAGS) announced cash dividends worth $0.12 to shareholders as of record date June 16, 2025. The dividends are payable on August 15, 2025. While we acknowledge the potential of PAGS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Bloomberg
18-06-2025
- Business
- Bloomberg
Brazil Economists' Shifting Calls Presage Thriller Rate Decision
On the eve of Brazil's interest rate decision this week, XP's Chief Economist Caio Megale agonized over data and policymaker speeches before switching his forecast to a hold from a quarter-point rise. Poring over the same details, ASA economist Leonardo Costa went the opposite way, ditching his bet on steady borrowing costs and calling for a hike instead. Those last-minute changes — far from being isolated cases — highlight the tension gripping Brazil-watchers in financial districts from Wall Street to Faria Lima as they rack their brains before Wednesday's announcement. As of now, 19 of 31 analysts in a Bloomberg survey expect the central bank to pause its tightening cycle at 14.75%, while the remaining 12 forecast a rise to 15%.
Bloomberg
10-06-2025
- Business
- Bloomberg
Brazil's Annual Inflation Slows for the First Time Since January
Brazil's annual inflation eased more than expected in May, snapping three months of advances before central bankers gather to decide whether or not to extend their aggressive cycle of interest rate hikes. Official data released Tuesday showed consumer prices rose 5.32% from a year prior, below the 5.39% median estimate of analysts surveyed by Bloomberg. On the month, inflation hit 0.26%.
Bloomberg
30-05-2025
- Business
- Bloomberg
Moody's Cuts Brazil Outlook, Delivering Fiscal Warning to Lula
By , Giovanna Bellotti Azevedo, and Martha Viotti Beck Updated on Save Moody's Ratings lowered Brazil 's credit outlook to stable from positive, delivering a reproof to President Luiz Inacio Lula da Silva's government at a time when it is under increasing pressure to shore up the country's fiscal situation. The ratings firm, which upgraded the country in October, reaffirmed its Ba1 rating, one level below investment grade. But it cited expectations of larger fiscal deficits, slower progress in structural reforms and budget pressure from high interest rates to alter its overall outlook for Latin America's largest economy on Friday.
Reuters
23-05-2025
- Business
- Reuters
Brazil walks back higher tax on investments abroad under fire
SAO PAULO, May 23 (Reuters) - Brazil's Finance Ministry on Friday said it had scrapped a higher transaction tax on funds invested abroad after critics inside and outside the government blasted the move as backsliding toward the return of capital controls. The measure was part of an executive decree on Thursday raising Brazil's IOF financial transactions tax for a range of operations in order to plug a budget gap. Immediate outcry led Finance Minister Fernando Haddad to partially reverse course. "Due to the repercussions we had to be quick with the revision," Haddad told journalists in Sao Paulo. "We understood that ... it was worth reviewing this item to avoid speculation about objectives that are not proper to the Finance Ministry or the government, such as inhibiting foreign investment, which had nothing to do with it," he said. Brazil's currency weakened over 1% against the U.S. dollar in Friday morning trading before paring losses, supported by global dollar weakness (.DXY), opens new tab. The higher tax rates, rolled out on Thursday with immediate effect, caught the central bank and parts of the government's own economic team off guard, according to three officials who requested anonymity. The central bank did not approve or support the move, which reversed Brazil's recent efforts to streamline currency-related taxation as part of a push to join the Organisation for Economic Co-operation and Development, the sources said. "It's a setback for the internationalization of the Brazilian economy," said one of the officials. Haddad, who said in January that the government would not modify the IOF tax on currency transactions, acknowledged on social media that Thursday's measures were not coordinated with the central bank. Former central bank director and economist Tony Volpon blasted the measures on X. "Imposing a 3.5% IOF on all investments made by Brazilians abroad ... amounts to capital controls," he wrote on Thursday. On Friday, he said the reversal on financial flows was correct, but lamented that companies still had to pay a 3.95% IOF rate on loans, on top of interest rates in double digits. High-income Brazilians will also pay more for transfers involving their pension funds. A range of foreign exchange operations such as international credit, debit and prepaid card transactions will pay a new IOF rate of 3.5%. The Finance Ministry announced the higher rates as a way to boost public revenue by 20.5 billion reais ($3.61 billion) this year and 41 billion reais in 2026 to hit fiscal targets. By returning to zero the IOF rate on transfers by Brazilian funds investing abroad, rather than raising it to 3.5% as planned, Haddad said the government would forego about 6 billion reais of additional revenue through 2026. ($1 = 5.7058 reais)
