ANALYSIS - Brazil rate decision more economic than political - Reuters India

By
Viraj
on March 20, 2010 4:46 AM | | TrackBacks (0)
SAO PAULO (Reuters) - Politics played a minor role at best in keeping Brazilian interest rates low this week, despite some market fears that it would overshadow economic considerations.

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With Brazil fully entering the election-year swing, speculation has mounted that the government is pressuring the central bank to keep rates low to help the ruling party presidential candidate, Dilma Rousseff.

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Further muddying the waters, central bank head Henrique Meirelles could step down before an April 3 deadline to run for office, perhaps even as vice president on Rousseff's ticket.

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