HALISTER1: BCB Cut More Likely 25bps Than 50bps Due to Service Prices: Icap

BCB Cut More Likely 25bps Than 50bps Due to Service Prices: Icap

(Bloomberg) -- Still high services inflation may keep Brazil’s central bank from cutting Selic rate by 50bps in October, opting for a more prudent pace of 25bps, Juliano Ferreira, strategist at Icap Brasil, says in a phone interview.
  • Despite cautiousness on inflation, part of the participants in the DI market, currently split between 25bps and 50bps cut, may migrate toward a bet of a bigger move should Congress assure greater progress on spending cap vote
  • NOTE: Services inflation has been seen as one of the BCB’s three main drivers for a eventual monetary easing, along with food prices and fiscal reforms
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Juliano Ferreira (ICAP PLC)

To de-activate this alert, click here

UUID: 7947283