Halister News

(Bloomberg) -- BCB’s minutes from last week’s policy meeting expected to reinforce message from post-decision statement, which hinted at a "moderate reduction" of easing pace for next encounter in October and also signaled that cycle will be gradually closed, while analysts will be looking for signs on the "arrival point" of the terminal Selic rate.

• Possible introduction of discussion on how long Brazil’s central bank will be able to keep rates below neutral interest will also be monitored by investors, although clarification on these two points more likely to come in the Quarterly Inflation Report, to be released at the end of September, analysts say
• Minutes may bring more clues regarding the gradual closure of easing cycle, says Marcelo Cirne de Toledo, chief economist at Bradesco Asset Management
• Minutes should strengthen the signal of moderate reduction in easing pace for the next Copom meeting and the fact that cycle is now at a more advanced stage, says Jankiel Santos, chief economist at Haitong
• Marco Antonio Caruso, economist at Banco Pine, says both BCB’s projections for inflation in the end of 2017 and 2018 are quite high compared to Pine’s forecast and, if this is true, he will be looking to understand if the terminal Selic rate could go below 7%
• "Given that Copom revealed preference for reaching an accommodative monetary stance due to the current macro backdrop, we will be looking at the minutes for any discussion about the time-horizon to then bring rates back to neutrality", Goldman Sachs says in a report signed by Alberto Ramos and Paulo Mateus
• NOTE: Brazil Cuts Key Rate to 8.25%, Hints at Slower Easing Ahead

--With assistance from Josue Leonel and Ana Carolina Siedschlag. To contact the translator on this story: Vinícius Andrade in São Paulo at vandrade3@bloomberg.net To contact the translation editor responsible for this story: Ney Hayashi at ncruz4@bloomberg.net Reporters on the original story: Vinícius Andrade in São Paulo at vandrade3@bloomberg.net; Patricia Lara in Sao Paulo at plara6@bloomberg.net Editors responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net Marisa Castellani