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Brazil IPCA-15 (Feb. 2022)

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.

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