HALISTER1: Brazil’s Year-End Selic Estimate Cut to 7.5% From 8%: Quantitas

Brazil’s Year-End Selic Estimate Cut to 7.5% From 8%: Quantitas

(Bloomberg) -- Economic data are overshadowing political caution and changing rate outlook, Quantitas Gestao de Recursos says in report signed by economists Ivo Chermont and Joao Fernandes.
  • Political shock did not translate into a devaluation of BRL, nor an increase in inflation expectations for 2018
  • Inflation 2017 estimates keep falling and should end year very close to 3%, bottom of govt’s target range
    • Inflation in 2018 seen at 4.2%, at risk of being below
  • Base scenario sees cut of 1 ppt in the Selic rate next week; -0.75 ppt in Sept.; -0.50 ppt in Oct.; -0.50 ppt in Dec.
Original Story: Quantitas reduz estimativa Selic de 8% para 7,50% ao fim de 2017 To contact the translator on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net Reporter on the original story: Marisa Castellani in Sao Paulo at mcastellani7@bloomberg.net Editors responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net Taís Fuoco

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