Brazil: BCB minutes to give hints about the extent of easing in its cutting cycle - TDS
Analysts at TDS suggest that the BCB minutes will be released today and perhaps will give hints as to the degree to which the central bank will ease off of its cutting cycle.
Key Quotes
“We believe that the language of the policy statement suggested that it is likely that the BCB moves to a 75bps cut at the next meeting, however there may be some degree of risk of even less easing, but this will depend on how the BCB feels the lack of further fiscal reform impacts Brazil’s structural interest rate.”
“May inflation is expected to continue to drop on a Y/Y basis to sub-4%, and will likely continue to keep easing until base effects ebb post-August, providing the BCB with no real near term concern at this point.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
