BRASILIA (Dow Jones)--Brazil will maintain its TJLP long-term interest rate unchanged at 6.00% annually for the first quarter of 2010, the country's National Monetary Council, or CMN, announced Wednesday.
The TJLP, used on loans to businesses made by the government-backed Brazilian National Development Bank, has been held unchanged since the second quarter this year. The rate normally is based on expectations for inflation plus risk spreads on the country's sovereign debt. The government, however, didn't reveal the composition of the rate.
According to recent Brazilian central bank market surveys, Brazil's IPCA consumer price inflation is seen at around 4.5% over the coming 12 months.
Brazil's sovereign debt spreads, according to the J.P. Morgan Emerging Markets Bond Index Plus, stood at 191 points over U.S. Treasurys at Tuesday's market close.
The CMN is the Brazilian government's highest-ranking economic policy-making body. It's chaired by Finance Minister Guido Mantega and also includes Central Bank President Henrique Meirelles and Planning Minister Paulo Bernardo. The council reviews the TJLP rate every three months.
-By Gerald Jeffris, Dow Jones Newswires; (5561) 3335-0832; gerald.jeffris@dowjones.com
