27 Apr 2016
Brazil: BCB to keep Selic rate static at 14.25% - TDS
Research Team at TDS, expects the BCB to keep the Selic rate on hold at 14.25% at its policy meeting today; this is in line with the unanimous consensus.
Key Quotes
“With inflation coming down, dragged lower by the collapse in non-administered price inflation, and slight easing in inflation expectations and inflation diffusion, we also expect that the two dissents for further rate hikes will now be absent from the terse policy statement.
The market continues to aggressively price in at least 100bps in rate cuts by the end of the year, which we feel is too aggressive and will require a significant fiscal adjustment to be realized.”
Key Quotes
“With inflation coming down, dragged lower by the collapse in non-administered price inflation, and slight easing in inflation expectations and inflation diffusion, we also expect that the two dissents for further rate hikes will now be absent from the terse policy statement.
The market continues to aggressively price in at least 100bps in rate cuts by the end of the year, which we feel is too aggressive and will require a significant fiscal adjustment to be realized.”