EMERGING MARKETS-Brazil rate futures up as cenbank sees higher inflation
SAO PAULO, Dec 23 (Reuters) - Yields paid on short-dated contracts for Brazilian interest-rate futures rose on Tuesday after the central bank raised its inflation forecast for next year, suggesting monetary policy will have to be tighter to curb the pace of price gains. Meanwhile, most Latin American currencies edged higher before the release of key U.S. economic data including third-quarter economic growth. Trading volumes were thin before the Christmas holiday. Brazil's central bank forecast that inflation will hit 6.1 percent in 2015, up from its previous estimate of 5.8 percent and dangerously close to the ceiling of an official target range. The new estimate drove traders to increase bets that policymakers will continue to raise the benchmark Selic rate at an aggressive pace of 0.5 percentage point in January. Long-dated interest rates fell on hopes that a tight monetary policy next year will make room for lower rates in the future. Yields paid on interest-rate contracts maturing in January 2016 rose 3 basis points while those expiring in January 2023 dropped 5 basis points. Key Latin American stock indexes and currencies at 1225 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging 952.94 -0.48 -4.5 Markets MSCI LatAm 2727.15 -0.2 -14.62 Brazil Bovespa 50199.8 0.16 -2.54 Mexico IPC 0 0 -100.00 Chile IPSA 3798.88 0.01 2.69 Chile IGPA 18644.42 0.01 2.29 Colombia IGBC 11712.85 0 -10.39 Currencies daily % YTD % change change Latest Brazil real 2.6579 0.08 -11.33 Mexico peso 14.6435 0.15 -11.02 Chile peso 609 0.08 -13.61 Colombia peso 2330 -0.13 -17.08 Peru sol 2.97 0.00 -5.96 (Reporting by Walter Brandimarte Editing by W Simon)
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