HALISTER1: Bradesco Cuts 2017-End Brazil’s Selic Forecast to 8% From 8.5%

Bradesco Cuts 2017-End Brazil’s Selic Forecast to 8% From 8.5%

(Bloomberg) -- (Translated by Google and reviewed by Bloomberg editors.)
  • Bradesco now sees 1.25 ppts and 1 ppt declines in the next two Copom meetings, followed by two further cuts of 0.5 ppt, pushing Selic to 8% in 2017, a level that will be maintained in 2018, says Bradesco, in a report.
  • Previous projection indicated that Selic would reach 8.5% for both years
  • Economic data have recently sustained the expectation of more expressive cuts in interest rates
  • Bradesco reduces CPI projection from 3.9% to 3.7% in 2017 and from 4.5% to 4.1% in 2018
    • The speed of decompression of current inflation, coupled with the anchoring of short- and medium-term inflation expectations, has led us to revise our inflation scenario for 2017 and 2018
  • Exchange rate will continue close to the current level, with a bias of appreciation, reflecting the fundamentals and favorable path for the pension reform

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
BBDC4 BZ (Banco Bradesco SA)

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