Investor sentiment about Brazil turning more positive

New York

SOME investors are carefully betting that the recent selloff in Brazilian financial markets was overdone, pointing to signs that inflation is slowing and the government is getting its finances in order.

Many expect inflation will come down from its current 11-year high of 8.13 per cent, thanks to the central bank's interest rate hike cycle of 1.75 percentage points since October, as well as the economic slump's effect on demand.