BCB Report Shows More Cautious View on CPI, Rates: Analysts
Source: BFW (Bloomberg First Word)
People
Win Thin (Brown Brothers Harriman & Co)
Camila Abdelmalack (Cm Capital Markets Corretora De Cambio Titulo E Valores Mobiliarios Ltda)
Ilan Goldfajn (Banco Central do Brasil)
Jason Vieira (Infinity Asset Management Administracao de Recursos)
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UUID: 7947283
(Bloomberg) -- Brazil central bank’s quarterly inflation report, the first under new chief Goldfajn, shows that rate cuts may start later than the market expects, analysts say.
Alert: HALISTER1- “With price pressures remaining elevated, I think the market is reassessing the chances of a rate cut at the July 20 Copom meeting,” Win Thin, the head of emerging-market strategy at Brown Brothers Harriman in New York
- “Goldfajn is taking a hawkish stance here, and is putting pressure on the government to deliver fiscal tightening before monetary easing can be justified”
- NOTE: BCB reported today that CPI may stay above target in 2017, with no room to cut rate; DI rates rise, with market curbing the already marginal bets on a cut in the next meeting
- Goldfajn’s more hawkish tone means Selic may stay unchanged until at least October, Jason Vieira, economist at Infinity Asset Management, says
- BCB report was slightly more cautious when forecasting CPI of 4.7% in 2017, while the minutes written when Tombini was the governor showed inflation in the 4.5% target in the same year, Camila Abdelmalack, economist at CM Capital Markets, says
- CM maintains its previous view that Selic cuts may start in October
Source: BFW (Bloomberg First Word)
People
Win Thin (Brown Brothers Harriman & Co)
Camila Abdelmalack (Cm Capital Markets Corretora De Cambio Titulo E Valores Mobiliarios Ltda)
Ilan Goldfajn (Banco Central do Brasil)
Jason Vieira (Infinity Asset Management Administracao de Recursos)
To de-activate this alert, click here
UUID: 7947283