This paper investigates the relationship between interest rate and volatility of real effective exchange rate in Brazil …, it was observed that: it’s not possible to say that the percentage change in real effective exchange rate, its volatility … inflation targeting, this account suggests that the high exchange rate volatility in Brazil may be related to the monetary …

idiosyncratic differences between the banks, reacted to macroeconomic risk factors. Through empirical analysis focused on … macroeconomic variables, the unemployment rate and the risk measured by the EMBI were also important in determining the loan spread …. The volatility of interest rates, however, showed no significant results. …