The further rise in Brazilian inflation, to 8.1% y/y in the middle of June, keeps Copom on track to increase the Selic rate to 6.50% (from 4.25% now). But we don’t think that the inflation risks are sufficient (yet) to prompt larger hikes of 100bp at each meeting (rather than the current pace of 75bp hikes).
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.