The slightly lower-than-expected Brazilian inflation figure for the first half of this month, of 3.8% y/y, and signs of softening underlying core price pressures might just be enough to give Copom room to cut the Selic rate by another 50bp at the next meeting in May. But the key point is that, with fiscal concerns building and the real under pressure, the pace of monetary easing is set to slow very soon.
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