Brazil real rallies 2 pct after surprise interest rate hike

jueves 30 de octubre de 2014 07:22 GYT
 

RIO DE JANEIRO, Oct 30 (Reuters) - The Brazilian real
rallied over 2 percent early on Thursday as a surprise interest
rate hike by the central bank raised hopes that re-elected
President Dilma Rousseff is on track to adjust economic policies
in her second term.
    The real jumped 2.1 percent in the first minutes of
trade to 2.4155 per dollar after Brazil raised the base Selic
rate to 11.25 percent from 11.0 percent on Wednesday night,
surprising all 43 economists in a Reuters poll who expected no
rate change. 
    Yields paid on short-dated contracts for interest rate
futures <0#2DIJ:> rose as analysts said the rate hike was
probably the beginning of a new tightening cycle by the central
bank. 
    Long-term interest rate futures fell, on the other hand, on
bets that a more credible monetary policy will bring down
inflation, making room for lower interest rates down the road. 
    
    Most-traded interest-rate futures contracts at 1120 GMT 
    
 month   ticker       last    previous close  change(p.p.
                      (pct)       (pct)            )
  JAN5                11.24       10.943         0.297
  JAN6                12.17       11.83          0.34
  JAN7                12.21       11.98          0.23
  JAN1                12.07       12.15          -0.08
  JAN3                12.08       12.22          -0.14
 

 (Reporting by Walter Brandimarte Editing by W Simon)