BCB May Maintain On-Hold Signals For Prolonged Period: Icatu
(Bloomberg) -- Despite preliminary signs 2016 inflation expectations have stopped worsening, the BCB may keep signaling that rates will be left unchanged for a prolonged period to assure prices will slow further, Rodrigo Melo, Chief Economist at Icatu Vanguarda Administracao de Recursos, an investment firm in Rio, says in a phone interview.
- BCB today starts its March 2-day meeting, may keep Selic steady at 14.25% and also maintain its on-hold stance
- While Brazil real and swap rates have showed some stabilization in recent weeks, risks remain
- Mkt monitors political crisis, U.S. and China economies
- In case U.S. economy resumes faster growth, renewed bets on rate hikes could lead to a selloff, harming BRL and other assets that have benefited from Fed’s recent dovish signals
Alert:
HALISTER1Source: BFW (Bloomberg First Word)
People Rodrigo Melo (Icatu Vanguarda Administracao de Recursos Ltda)
To de-activate this alert, click
hereUUID: 7947283