A post on the sometimes worthwhile, Zero hedge
Brazil Bank Signals Rate Rise Is Near
Brazil’s central bank caught markets somewhat by surprise Wednesday with an unusually clear commitment to raise interest rates soon, as the outlook for inflation has become “far less favorable” than it had previously thought.
Brazil joins other emerging countries, including China, that are taking steps to cool their economies, for fear of overheating. Earlier this month, China said it will shift to a “prudent” monetary policy next year, amid growing concern in Beijing about inflation and excessive liquidity fueled partly by loose monetary policies in other countries.