off-the-wire

UPDATE 1-Brazil's IBC-Br economic activity index falls 0.04% in January

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds details, context) BRASILIA, April 17 (Reuters) -


Brazil's economic activity started the year with a slight negative performance, central bank data showed on Monday, highlighting the trend of economic slowdown amid high borrowing costs.


The IBC-BR economic activity index, a leading indicator of gross domestic product, fell by a seasonally adjusted 0.04% in January from December. However, compared to the same month in 2022, the index grew by 3.03%.


The new government of leftist President Luiz Inacio Lula da Silva has been consistently appealing for a reduction in the benchmark interest rate to alleviate its negative impacts on activity, while policymakers have argued that inflation expectations are still diverging from official targets, justifying a cautious stance.


The central bank has held rates steady at a six-year high of 13.75% since September, after pushing them up from a record low of 2% at March 2021 to battle rising consumer prices.






(Reporting by Marcela Ayres; Editing by Steven Grattan)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.