“Brazil swap rates fell as analysts in a central bank survey cut their economic growth forecasts for a fifth straight week, supporting speculation borrowing costs will stay at record lows through the first half of 2013.
Swap rates on contracts due in January 2014 dropped one basis point, or 0.01 percentage point, to 7.08 percent at 9:57 a.m. in Sao Paulo. The real depreciated 0.1 percent to 2.0877 perU.S. dollar.
About 100 economists in a weekly central bank survey published today cut their median estimate for 2013 growth to 3.4 percent from 3.5 percent the week before. They raised their year-end inflation forecast for next year to 5.42 percent from 5.40 percent.
“Even though there are inflation concerns, the weak GDP numbers prevailed,” said Roberto Padovani, the chief economist at Votorantim Ctvm, in a phone interview from Sao Paulo.”
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