Brazil: Inflation expected to fall further to 4.5% - TDS

Analysts at TDS expect Brazil’s mid-April IPCA is expected to fall further to 4.5%, essentially the first time inflation is to reach the BCB’s target in this disinflationary cycle.

Key Quotes

“The BCB expects inflation to trough in the third quarter of the year, but remain below target for the duration of 2017, which keeps the risk bias “alive” for the BCB’s policy stance to exact more easing past our 9.25% end of year target, contingent on the execution of fiscal reforms.”