Halister News

(Bloomberg) -- BRL gains reflect perceptions that faster rate cuts driven by declining inflation and structural reforms may attract bigger capital inflows, Olavo Souza, FI trader at Mirae, says in phone interview.

• While below-estimate CPI data Wednesday will increase wagers on a faster pace of rate cuts, BCB remains likely to cut the Selic by 50bps in January; speeding up pace to 75bps possible beginning in 2Q if government makes further progress on structural reforms
  • Pension regime reform, which could foster long-term fiscal austerity, could spur Selic to fall toward 7.5% in 2018 vs current 13.75%; real rate could fall to 3%