BCB Minutes Show Bigger Chance of 25bps Cut in November: ARX
(Bloomberg) -- Central bank minutes released today reinforced the view in meeting statement from last Wednesday, Solange Srour, chief economist at ARX Investimentos, says in a phone interview.
- BCB kept cautious stance on services inflation and on the fact that fiscal reforms are a long process
- Central bank also sees recent fluctuations in activity as “normal”
- Potential acceleration of pace of rate cuts is data- dependent; considering remaining scenarios, BCB signals biggest probability of a 25bps cut at November meeting: ARX
- NOTE: DI rates rise after BCB minutes; BRL gains 2nd day
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