HALISTER1: Brazil Rate to Be Cut by 100Bps in July, End ’17 at 8.25%: Fator

Brazil Rate to Be Cut by 100Bps in July, End ’17 at 8.25%: Fator

(Bloomberg) -- Previous projection of Banco Fator for next Brazil Central Bank meeting was of a 75-bps cut in Selic rate, chief economist Jose Francisco Goncalves says in phone interview.
  • Selic rate likely to end Oct. at 8.25% and remain at that level until end of 2017
    • Previously, Banco Fator projected Selic at 8.50% by year end
  • Inflation continues to surprise favorably; there is a very favorable outlook, Goncalves says
  • Banco Fator’s projection of IPCA inflation index at 3.65% by end of 2017 will be revised downwards
  • There is a major worsening in political uncertainty, but BRL has been close to 3.30/USD, suggesting that it is possible that FX rate will drop somewhat if there is a more positive routing on the political issue
Original Story: Fator vê corte de 1 pp em julho, Selic a 8,25% no fim de 2017 To contact the translator on this story: Danielle Chaves in Sao Paulo at djelmayer@bloomberg.net Reporter on the original story: Vinícius Andrade in São Paulo at vandrade3@bloomberg.net Editors responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net Taís Fuoco

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Jose Goncalves (Banco Fator SA)

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