Brazil's Low Unemployment Expected to Keep Borrowing Costs High -- Market Talk
Dow Jones
Nov 06
1252 ET - Brazil's labor market will likely drive the central bank to keep interest rates among the highest in the world later today. The country's 5.6% unemployment rate may seem elevated compared to the U.S.'s 4.3%, but it is actually one of the lowest on record in Brazil. "This keeps labor-sensitive prices from falling faster," says economist Maykon Douglas. A strengthening currency makes imports cheaper, but that is offset by low unemployment, Douglas says. The central bank's Selic rate is at 15% since June, following a hiking cycle. The Brazilian real is up 15.5% against the dollar this year. (paulo.trevisani@wsj.com; @ptrevisani)
(END) Dow Jones Newswires
November 05, 2025 12:53 ET (17:53 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.