HALISTER1: Brazil May Attract More Flows With Potential BCB Cut: Mirae

Brazil May Attract More Flows With Potential BCB Cut: Mirae

(Bloomberg) -- BCB inflation report shows bigger chance of a cut in October and may lure more investments, Pablo Spyer, director at Mirae, says in a phone interview.
  • Inflow for fixed income already seen may increase as investors are likely to enter before a deeper drop in rates
    • Main topic of BCB 3Q inflation report is that the bank sees CPI converging for its targets, Spyer says
    • BCB may start the Selic rate cut cycle with -25bps in October; should BCB prefer to start the easing in November, it could cut the rate by 50bps
  • NOTE: DI rates drop and market prices in 31bps cut in October meeting vs 28bps projected yesterday
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Pablo Spyer (Mirae Asset Global Investments)

To de-activate this alert, click here

UUID: 7947283