Halister News

(Bloomberg) -- (Translated by Google and reviewed by Bloomberg editors.)

• The inflation report may be modified to reduce the emphasis on a possible moderation in the pace of interest rate cuts in face of fresh evidence on inflation and after the IPCA inflation index showed a significant downward surprise in May, says a report signed by the chief economist Mario Mesquita
• In addition to the IPCA, economist quotes expectations for inflation measured at Focus, which, despite political uncertainty, showed a median decline in 2017 and relative stability for 2018
• If the inflation report becomes less emphatic about the adequacy of the moderate deceleration of the rate of cut in the next monetary policy meetings, this will be a clear signal that the committee can be divided between 75bps or 100bps
• For now, Itau forecasts a cut of 75bps in July and 50bps in the three subsequent meetings; Forecast is 8% at the end of 2017 and 2018

Original Story: Itaú: Após IPCA, RTI pode reduzir ênfase na moderação do ritmo To contact the translator on this story: Priscilla Murphy in Brasilia Newsroom at pmurphy134@bloomberg.net Reporter on the original story: Patricia Lara in Sao Paulo at plara6@bloomberg.net Editors responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net Priscilla Murphy, Marisa Castellani