The stronger-than-expected rise in Brazil’s inflation to 10.8% y/y over the first half of February is likely to mean that the central bank’s tightening cycle has much further to run. We expect a cumulative 150bp of hikes to the Selic rate, to 12.25%, in this cycle although the risks are skewed towards further tightening.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.