HALISTER1: BCB’s Expected Hold Puts Market Rate Outlook in Goldfajn’s Hands

BCB’s Expected Hold Puts Market Rate Outlook in Goldfajn’s Hands

(Bloomberg) -- BCB decision to keep Selic rate at 14.25% met expectations of all economists surveyed by Bloomberg.
  • Statement was unchanged, maintains the previous on-hold stance for next meeting, contradicting market bets on cuts starting July, investors from tomorrow will follow discourse of new governor, Ilan Goldfajn, who is expected to take helm tmw
    • Goldfajn likely to pursue the midpoint of the 4.5% inflation target more strictly than predecessor Tombini, Opus economist Jose Marcio Camargo said
  • Investors are watching changes in composition of Copom, Goldman says
    • GS expects cuts to start in August
  • May CPI released today topped estimates
  • BCB gave the message that Selic won’t be cut in July, Modal said
  • Next BCB inflation report may see change in tone, the brokerage firm Mirae said
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Ilan Goldfajn (Banco Central do Brasil)

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