The jump in Brazilian inflation to 5.0% y/y in the first half of September, taken together with the more cautious tone of the minutes to last week’s central bank meeting, supports our view that the monetary easing cycle will proceed gradually. The profile for the Selic rate implied by market pricing has drifted up towards our own forecast, although the analyst consensus forecast still looks too dovish.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.