HALISTER1: Brazil CPI Signals Shift in Rate-Cut Pace Unlikely: Sul America

Brazil CPI Signals Shift in Rate-Cut Pace Unlikely: Sul America

(Bloomberg) -- Above-estimate mid-month CPI in February reduces the chance that the central bank willo adopt a more dovish stance, Newton Rosa, chief economist at Sul America Investimentos, says in a phone interview.
  • BCB likely to keep pace of 75bps cuts and release statement with similar message to prior meeting; if inflation were more tame, BCB could keep the pace, while changing the statement to signal bigger cuts in the meetings ahead
    • Bets on a 100bps cut are likely to subside
  • “The numbers shows that inflation is still alive and can’t be neglected”
  • NOTE: Feb. IPCA-15 figure is the first to top estimates since July 2016
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Newton Rosa (Sul America Cia Nacional de Seguros)

Topics
First Word Agriculture

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