HALISTER1: BCB May Cut Key Rate by 125Bps Two Consecutives Meetings: Modal

BCB May Cut Key Rate by 125Bps Two Consecutives Meetings: Modal

(Bloomberg) -- (Translated by Google and reviewed by editors.)
  • Modal Asset reduces Selic’s estimate at the end of 2017 from 9% to 8.5%, with two consecutive cuts of 125bps, followed by cuts of 75bps and 50bps, says Modal partner and manager Luiz Eduardo Portella.
  • Projection for 2017 CPI reduced from 4% to 3.80%
  • Reasons for changes are acceleration of services inflation drop, in addition to restrictive instances by BNDES, public banks and fiscal policy
  • “It is time for the BC to help stimulate the economy given that inflation is controlled and with a downward trend,” says Portella

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Modal Asset Gestao (Banco Modal SA)

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