Latest news with #GuilhermeMello
Yahoo
08-08-2025
- Business
- Yahoo
Brazil economy starting to see impact of high rates, official says
SAO PAULO (Reuters) -Brazil's government believes the economy is starting to feel the effects of high interest rates and will closely monitor data to see if those impacts are "wider than initially expected," Economic Policy Secretary Guilherme Mello said on Friday. Brazil's central bank last week held its benchmark rate at 15%, the highest in almost two decades, pausing an aggressive tightening cycle after seven consecutive hikes aimed at fighting sticky inflation, which should cool down economic activity. "Monetary policy is having the expected impact, perhaps even sooner than expected," Mello told an event hosted by news outlet JOTA, though adding the government for now continues to see growth this year close to 2.5%. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
08-08-2025
- Business
- Reuters
Brazil economy starting to see impact of high rates, official says
SAO PAULO, Aug 8 (Reuters) - Brazil's government believes the economy is starting to feel the effects of high interest rates and will closely monitor data to see if those impacts are "wider than initially expected," Economic Policy Secretary Guilherme Mello said on Friday. Brazil's central bank last week held its benchmark rate at 15%, the highest in almost two decades, pausing an aggressive tightening cycle after seven consecutive hikes aimed at fighting sticky inflation, which should cool down economic activity. "Monetary policy is having the expected impact, perhaps even sooner than expected," Mello told an event hosted by news outlet JOTA, though adding the government for now continues to see growth this year close to 2.5%.
Reuters
19-05-2025
- Business
- Reuters
Brazil's government lifts 2025 GDP forecast, nudges inflation outlook higher
BRASILIA, May 19 (Reuters) - Brazil's Finance Ministry on Monday nudged its growth forecast higher and lifted its inflation projection for this year, according to fresh estimates from its economic policy secretariat. Gross domestic product (GDP) is now seen expanding 2.4% in 2025, up from the 2.3% seen in March, while the 2026 forecast was kept at 2.5%. Meanwhile, consumer prices are expected to rise 5.0% this year and 3.6% next year, compared with previous estimates of 4.9% and 3.5%, respectively. The upward revision of the 2025 GDP projection was related to a higher economic growth outlook for the first quarter, and to raised predictions of agricultural production in the year, according to the secretariat. Brazil's central bank hiked the benchmark interest rate to 14.75% earlier this month, its highest level in nearly two decades, with policy makers saying "significantly contractionary" policy would be needed for a prolonged period to return inflation to target. Guilherme Mello, the economic policy secretary at the Finance Ministry, told journalists in Brasilia that monetary policy has indeed been impacting the government's projections. He said a slowdown in economic activity is expected for the second half of the year, mostly on the back of higher rates, with effects already seen in cyclical segments of the economy. Brazil confirmed its first outbreak of bird flu on a commercial farm on Friday, triggering a series of poultry export restrictions. Mello said it was too early to gauge the economic impact.
