Halister News

(Bloomberg) -- Real interest rates have fallen by half to about 3%, which boosts country’s assets and may help stocks to keep rising, says Luiz Fernando Figueiredo, founder of Maua Capital and former central bank director, in a telephone interview.

• There is a virtuous cycle in place, with a robust balance of payments, low inflation and falling interest rates
• Scenario is improving; stocks may rise further as long as there is no rupture in the economy
• The origin of this improvement is in the political framework; markets consider that there will be no change in economic agenda until the elections; vote will only begin to be priced in in April or May, when candidacies will be known
• There is a sense of confidence that reform agenda will not change regardless the outcome of the elections, doubt is on degree
• Besides politics, another reason for the improvement in markets is that investors begin to have greater confidence in outlook for activity
• Selic rate expected to fall to 6.75% at the end of the easing cycle; real may strengthen further, but not too much beyond BRL3.00 due to election

Original Story: Figueiredo: Queda do juro real pela metade impulsiona bolsa To contact the translator on this story: Taís Fuoco in Sao Paulo at tfuoco1@bloomberg.net To contact the translation editor responsible for this story: Taís Fuoco at tfuoco1@bloomberg.net; Ney Hayashi at ncruz4@bloomberg.net Reporter on the original story: Josue Leonel in Sao Paulo at jleonel@bloomberg.net Editors responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net Taís Fuoco