Brazil's main stock index fell on Tuesday as shares in state-controlled oil company Petrobras dropped sharply, a day before the central bank's interest rate decision, The Rio Times reports. By late morning the Ibovespa was down 1.5 per cent at about 165,450 points, having fallen as much as 2.1 per cent, while Petrobras shares lost 3.9 per cent and the real weakened to around 5.50 to the dollar.
The index is now about 19 per cent below its late-October level. Sentiment worsened after the central bank's weekly survey of financial institutions raised its 2026 inflation forecast to 5.22 per cent and cut expected growth to 1.76 per cent. The policy rate, currently 13.75 per cent, is widely expected to stay unchanged on Wednesday.
Source: The Rio Times