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Latin America Update

Latin America Update

Brazil: Above-target inflation strengthens the case for a rate hike

Brazilian inflation rose above the upper band of the Central Bank’s (BCB’s) 4.5±2% target range in May. Inflation is likely to remain above target until the second half of next year. Accordingly, another 25bp interest rate hike to 12.25% at tomorrow’s meeting seems highly likely.

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This article is tagged with the following subjects: Brazil, Inflation, Latin America, Macro-economics
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