HALISTER1: Goldman Sachs Sees Chance of Brazil Key Rate Below 7% This Year

Goldman Sachs Sees Chance of Brazil Key Rate Below 7% This Year

(Bloomberg) -- Following the expected 75bp rate cut in October, rather than tapering again the Copom could go for another 50bp to 75bp rate cut at the December meeting driving the Selic below 7%, says Goldman Sachs chief-economist Alberto Ramos in a report.
  • If inflation continues to surprise on the downside and the recovery remains tentative and lackluster we do not rule out a more abrupt/decisive end of the cycle, says Ramos
  • Compared with the policy statement, the minutes leave the door open for a more abrupt and frontloaded ending of the easing cycle
    • The cycle may not end with the smoothest possible 25bp cut but with something more sudden
  • NOTE: Brazil Central Bank Signals Gradual Phasing Out of Easing Cycle
To contact the reporter on this story: Ana Carolina Siedschlag in São Paulo at asiedschlag@bloomberg.net To contact the editors responsible for this story: Daniela Milanese at dmilanese@bloomberg.net Maria Luiza Rabello

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Alberto Ramos (Goldman Sachs Group Inc/The)

To de-activate this alert, click here
To modify this alert, click here

UUID: 7947283