Inflation usually means interest rate is increase, making it more expensive to borrow money so REAL increases, that was why it was increased to 12.75% recently as inflation was high.
Recession usually means interest rate is decrease as they try to stimulate growth by making cost of borrowing lower so value of REAL decreases. When the US decides to increase interest rate, it will be more expensive to borrow money so the value of USD will increase in value compare to the other currency.
So interest rate increase in US, and recession in Brazil (given it is at 12.75% there is plenty to cut) will be benefit for MBN as both will increase the USD to REAL currency value.
I can see this happening later this year or next year after the Olympics.
MBN Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
