Brazil’s Inflation Expectations Slide With Selic Rate: Chart

(Bloomberg) -- While countries including Mexico, Turkey and Russia are either raising interest rates or keeping them unchanged, Brazil probably will slash benchmark borrowing costs for the second straight month on Wednesday, according to swaps traders and economists. Ilan Goldfajn, who became head of Brazil's central bank in June, is taking advantage of slowing inflation to provide monetary stimulus for an economy mired in its longest recession in more than a century. Brazil was forced to boost its key lending rate to the highest in a decade last year amid a plunge in its currency and a political crisis that resulted in the impeachment of President Dilma Rousseff.

To contact the reporter on this story: Bruce Douglas in Brasilia Newsroom at bdouglas24@bloomberg.net.

To contact the editors responsible for this story: Vivianne Rodrigues at vrodrigues3@bloomberg.net, Sophie Caronello