HALISTER1: BCB Decision Is Now Open Between 75Bps And 100Bps Cut: Itau BBA

BCB Decision Is Now Open Between 75Bps And 100Bps Cut: Itau BBA

(Bloomberg) -- Brazil Central Bank’s quarterly inflation report forecasts are consistent with a continuation of the easing cycle, towards the 8.5%/8.0% neighborhood by year-end, says Itau BBA in a report signed by chief economist Mario Mesquita.
  • Report refers to the signaling of deceleration, presented in the latest policy meeting statement and minutes, in the past tense, indicating that the next Copom decision is officially open between a 75bps and a 100bps move, Itau says
  • Given the forecasts and the heightened uncertainty in the scenario, Itau sticks to the view that the Copom will cut Selic rate by 75bps in July, although it notes that the decision will be data dependent
  • NOTE: Uncertainty Weighs on Brazil Economy and Rates: Central Bank
  • NOTE: BCB Report Allows Lower Target, Leaves Rate in Doubt: Analysts
To contact the reporter on this story: Ana Carolina Siedschlag in São Paulo at asiedschlag@bloomberg.net To contact the editors responsible for this story: Daniela Milanese at dmilanese@bloomberg.net Danielle Chaves

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Mario Mesquita (Itau Unibanco SA)

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