27 Apr 2016
Brazil’s COPOM expected to keep rates steady - BBH
Research Team at BBH, suggests that the Brazil’s COPOM meets and is expected to keep rates steady at 14.25%.
Key Quotes
“If disinflation continues, we think that rate cuts are likely this year. However, we do not think a move will be seen while the impeachment process is ongoing. That rules out this COPOM meeting, while the June 8 meeting is possible only if the Senate acts quickly to impeach. Perhaps the July 20 meeting is most likely.
The timing will be more difficult to predict if the central bank board is replaced, as local press reports suggest. The appointment of market-friendly hawks may make the bank more reluctant to ease as quickly as some expect.”
Key Quotes
“If disinflation continues, we think that rate cuts are likely this year. However, we do not think a move will be seen while the impeachment process is ongoing. That rules out this COPOM meeting, while the June 8 meeting is possible only if the Senate acts quickly to impeach. Perhaps the July 20 meeting is most likely.
The timing will be more difficult to predict if the central bank board is replaced, as local press reports suggest. The appointment of market-friendly hawks may make the bank more reluctant to ease as quickly as some expect.”