HALISTER1: Brazil 2017 CPI, Interest Rate Forecasts Cut at Credit Suisse

Brazil 2017 CPI, Interest Rate Forecasts Cut at Credit Suisse

(Bloomberg) -- End-2017 CPI forecast cut to 4.3% from 4.7% due to “more favorable inflation figures for February and the more benign inertia carryover for the next few months,” Credit Suisse economists including Nilson Teixeira write in report.
  • Selic rate forecast cut to 9% from 9.25%, following CPI estimate reduction
    • Maintains expectation of 100bps cuts in April and May and 50bps in September; increases projection of rate cut in July to 75bps from 50bps
    • “If inflation dynamics turns more benign in the next few months, we think the probability of a 100bps cut in July as well will increase substantially”
  • NOTE from March 10: Brazil Inflation Surprises Economists by Slowing in February
  • NOTE from March 10: Brazil Inflation Below Mexico for First Time Since 2009: Chart

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Nilson Teixeira (Banco de Investimentos Credit Suisse Brasil SA)

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