BLOOMBERG/ The Real strengthened 0.7% after the central bank lifted the benchmark lending rate to 9.5 % from a record-low 8.75% to rein in inflation. Interest-rate futures are betting that Brasil will raise borrowing costs to 12.75% by year-end. “Interest rates are low in the most important economies and we don’t have many alternatives in the world right now,” said Solange Srour Mellon Bank economist which manages about 11.4 billion reais. “The trend for the real is to appreciate.”
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