The fall in Brazilian inflation to 3.7% y/y last month and, more importantly, the sharp decline in underlying services inflation suggests that, despite the hawkish language in the Copom statement on Wednesday, policymakers are most likely to opt to cut the Selic rate by 25bp again at the June meeting.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.