Bloomberg News

Mantega Says Brazil Not Studying Changes to Saving Accounts

October 25, 2011

(Updates with market reaction in second paragraph.)

Oct. 25 (Bloomberg) -- Brazil’s government is not considering changes to the way returns on savings accounts are calculated, Finance Minister Guido Mantega told reporters in Brasilia today.

Yields on interest-rate futures contracts maturing after January 2012 fell this morning, after Valor Economico newspaper reported that the government was studying a proposal to tie payments to the benchmark Selic rate. The government was considering implementing the change in the first quarter of 2012 when the Selic would be around 10 percent, the Sao Paulo-based newspaper said.

The central bank cut the benchmark rate 0.50 percentage point to 11.5 percent at its policy meeting last week, and traders are betting on two more half-point cuts by the end of the first quarter.

The yield on the interest rate futures contract maturing in January 2013, the most traded in Sao Paulo today, pared losses and rose one basis point, or 0.01 percentage point, to 10.42 percent at 3:34 p.m. New York time.

--Editors: Harry Maurer, Robert Jameson

To contact the reporters on this story: Matthew Bristow in Brasilia at mbristow5@bloomberg.net Arnaldo Galvao in Brasilia at agalvao1@bloomberg.net

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net


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