CORRECTED-UPDATE 1-Brazil sees China hike boosting yuan

* Brazil sees China rate hike helping currency pressure

* Mantega says higher China rates could help boost yuan
(Corrects headline)
(Adds details on China’s decision, Mantega comments)

BRASILIA, Oct 19 (BestGrowthStock) – China’s surprise decision to
raise interest rates was a move “in the right direction” and
could help ease pressure on Brazil’s currency (BRBY: ), Finance
Minister Guido Mantega said on Tuesday.

China’s central bank increased benchmark borrowing costs
for the first time in almost three years, hoping to prevent a
bubble in asset prices and curb inflation.

The bank raised rates by 25 basis points, taking one-year
deposit rates to 2.5 percent and one-year lending rates to 5.56
percent. For details, see [ID:nSGE69I0HU]

“It helps indeed,” Mantega told reporters at the Finance
Ministry. “It could strengthen their currency a bit. It goes in
the right direction.”

Earlier this month, Mantega blamed China’s policy of
keeping the yuan weak as one of the main causes of recent
imbalances in currency markets. [ID:nN08235363]
(Reporting by Maria Carolina Marcello; writing by Elzio
Barreto; editing by Jeffrey Benkoe)

CORRECTED-UPDATE 1-Brazil sees China hike boosting yuan