Brazilian retail sales soaring

Retail sales in Brazil rose more than expected in July and sped up sharply from June, prompting worries that interest rate cuts could be premature. Retail sales volumes in Brazil jumped 1.4 per cent in July from June, the government announced yesterday, led by home appliance and food sales. Year-on-year, retail sales have jumped 7.1 per cent. The data comes less than two weeks after the central bank cut its benchmark interest rate to 12 per cent from 12.5 per cent, citing a gloomier outlook for the global economy. However, analysts are concerned that the weak global economic outlook may dampen Brazilian growth.