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2 Jun 2015
Further tightening expected in Brazil – TDS
FXStreet (Edinburgh) - Strategists at TD Securities see the Brazilian central bank hiking by 50 bp at tomorrow’s meeting.
Key Quotes
“On Wednesday, in line with the almost unanimous consensus, we expect the BCB to hike the Selic rate by 50bps to 13.75%”.
“Inflation continues to hover almost 2 percent above the upper target and the BCB will not want to lose control of inflation expectations before economic weakness and the lagged transmission of policy tightness in the real economy start pushing CPI lower”.
“A change in the language in the communiqué could indicate that the BCB expects this to be the end of the tightening cycle”.
Key Quotes
“On Wednesday, in line with the almost unanimous consensus, we expect the BCB to hike the Selic rate by 50bps to 13.75%”.
“Inflation continues to hover almost 2 percent above the upper target and the BCB will not want to lose control of inflation expectations before economic weakness and the lagged transmission of policy tightness in the real economy start pushing CPI lower”.
“A change in the language in the communiqué could indicate that the BCB expects this to be the end of the tightening cycle”.