Brazil’s stocks fell to their lowest point in three weeks, taking its exchange traded fund (ETF) down with them.

A larger-than-expected jump in industrial output had some people speculating whether the central bank would raise rates to calm the economy, reports Alexander Ragir for Bloomberg. Declines in the homebuilder and mobile phone sectors also weighed down the iShares MSCI Brazil (EWZ).

Gafisa SA, the country’s second-largest homebuilder, took a hit when Banco Santander SA recommended investors sell their shares. Then Vivo Participacoes SA (0.7% of the fund), the largest mobile phone carrier, stumbled after analysts said the government may force mobile phone companies to cut the rates they charge.

The Bovespa index of the most-traded stocks on Sao Paulo’s exchange were down 1.8% midday.

Despite today’s movements, EWZ has been a strong performer this year, up 22% so far. Brazil has entered a period of strong and fast economic growth thanks to a wealth of natural resources, a debt rating upgrade and global demand for the country’s exports.

Tags: Brazil, Emerging Markets, EWZ, Latin America, Real Estate, Sector ETFs, Telecommunications