Brazil’s economy to grow 3 to 3.5 percent in 2007, BNP Paribas says

14 February 2007

Lisbon, Portugal, 14 Feb– The Brazilian economy is expected to grow by between 3 and 3.5 percent this year and the stock market should provide a 20 percent return in 2007, said BNP Paribas Asset Management manager Jacopo Valentino in Lisbon Tuesday.

According to Portuguese financial daily, Diário Económico, Valentino said that Brazil’s monetary policy would focus on continued moderate reduction of interest rates, which at the end of the year should be below 12 percent.

In a press conference to present the Parvest Brasil fund, Valentino said that Brazilian shares remained relatively cheap as compared to the rest of Latin America.

He added that the main risk for the Brazilian stock market over the next year was a fall in the cost of raw materials on the international market as half the listed stock had a relationship with that market. (macauhub)