Brazil CPI Target Reduction to 4% Is Not Ruled Out: Banco Pine
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Marco Antonio Caruso (Banco Pine SA)
Michel Temer (Federative Republic of Brazil)
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UUID: 7947283
(Bloomberg) -- In the face of the alleged request from President Michel Temer to lower 2019 inflation target to 4% and of Brazil Central Bank weekly economists survey’s projection of the IPCA below 3%, a reduction of 50bps "is on the radar," said Marco Antonio Caruso, an economist at Banco Pine, in a telephone interview. See main points:
- Unemployment, efficient stance of monetary policy, weak economic activity give signs that disinflation is structural and can last longer
- BCB’s Focus survey is yet another argument for the National Monetary Council, or CMN, to reduce 2019 inflation target to at least 4.25%
- Markets should also keep an eye on the possible tariff change by Brazil electricity regulator Aneel to yellow
- With green flag, IPCA forecast for July is -0.02%; with yellow flag, forecast is something close to +0.10%
- Forecast for IPCA of June is -0.20%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Marco Antonio Caruso (Banco Pine SA)
Michel Temer (Federative Republic of Brazil)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283