The decline in inflation in Brazil to 4.8% y/y in the middle of November means that – barring a major surprise in the full-month outturn – the central bank is on course to lower the Selic rate by another 50bp at its meeting in a couple of weeks. But the strength of services inflation will remain a concern for policymakers and supports our view that interest rates won’t come down as far as most expect next year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services