Brazilian industrial production had its biggest rise for a January in 15 years: the industrial output rose 16,9% from January 2009, according to the census bureau IBGE. It said that the double-digit jump from a year earlier–which was the largest for a January since 1995–reflected the low base of comparison as January 2009 was still in the trough of the global economic downturn.
Paulo Leme, an economist at Goldman Sachs, told The Wall Street Journal that industrial production has returned to the high level recorded in January 2008. “After expanding vigorously for about 10 months, the pace of growth of industrial output has accommodated,” he said. Now, the big question is if Brazilian Central Bank is goig to raise the benchmarking Selic tax in its setting committee meeting, due to be held in 12 days time. he Selic is at all time low at 8.75%. Some analysts believe that the committee will wait at least a month more before raising it.