The drop in Brazilian inflation to an 18-month low of 6.9% y/y in the first half of October reinforces the view that the central bank’s tightening cycle is at an end. Even so, the strength of inflation in many core goods and services meanss that policymakers will use tomorrow’s central bank meeting to signal that the monetary stance will remain tight well into next year.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.