HALISTER1: Brazil Inflation Signals BCB’s Moderate Selic Cut in Oct: Mizuho

Brazil Inflation Signals BCB’s Moderate Selic Cut in Oct: Mizuho

(Bloomberg) -- Expectation that Brazil’s CPI will return to the floor of BCB’s target range in 2017 should lead market to fine-tune the bets in a moderate cut of 0.75 pp in the next Copom meeting, on Oct. 25, said Mizuho bank chief economist Luciano Rostagno in an interview.
  • Food prices will eventually stop the deflation process, "but I don’t see data suggesting any inflationary pressure in the short term", says Rostagno
  • "A normalization of prices seems natural"
  • "CPI has bottomed out in August, tendency is for it to accelerate"
  • NOTE: Brazil’s Inflation Slows Less Than All Forecasts in September
To contact the translator on this story: Ana Carolina Siedschlag in São Paulo at asiedschlag@bloomberg.net To contact the translation editor responsible for this story: Maria Luiza Rabello at mrabello@bloomberg.net Reporter on the original story: Ana Carolina Siedschlag in São Paulo at asiedschlag@bloomberg.net Editors responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net Fernando Travaglini

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Source: BFW (Bloomberg First Word)

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Luciano Rostagno (Banco Mizuho do Brasil SA)

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