Brazil's interest-rate futures jump after central bank minutes
RIO DE JANEIRO, July 24 (Reuters) - Yields paid on Brazil's interest-rate futures contracts jumped higher on Thursday after minutes of the central bank's latest monetary policy meeting poured cold water on speculation that policymakers could cut the benchmark Selic interest rate any time soon. Interest rates for January 2015 rose 3 basis points to 10.74 percent after the central bank said in a statement it "anticipates an outlook of resistant inflation in coming quarters." The bank added that keeping monetary conditions stable "tends to get (inflation) in the path of convergence toward its goal. Speculation that Brazil could cut interest rates in the next few months grew after the central bank last week said it had kept the Selic at 11 percent "at this moment" - an expression it usually uses to signal that a change in policy is possible in the short term. Many economists thought the bank was considering lowering the Selic to boost an economy that has been flirting with recession, even though inflation remains at the ceiling of a government target. Most traded interest-rate contracts at 1220 GMT: month ticker last previous change(p.p. (pct) close(pct) ) JAN5 10.77 10.74 0.03 JAN6 11.02 10.95 0.07 JAN7 11.2 11.14 0.06 JAN1 11.44 11.46 -0.02 (Reporting by Walter Brandimarte Editing by W Simon)
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