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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Barclays on Copom: Bolder Move Could Be Justified
- Barclays expect the BCB to hike the Selic rate by 125bp, to 6.50%, taking into account the latest upside, widespread surprises in inflation and the continued deterioration in inflation expectations, and considering that BCB Governor Roberto Campos Neto repeatedly warned that the bank stood ready to do "whatever it takes" to bring inflation back to its target.
- However, their confidence admittedly declined after Campos Neto's remarks on 14 September, saying that the Copom "will not change its flight plan after each high-frequency data that is released."
- Still, this is the last meeting in which 2022 has more weight than 2023 in the Copom's relevant horizon for monetary policy, which could justify a bolder move should the latest Focus survey out on 20 September confirm Barclays' expectation for additional deterioration in 2022 IPCA forecasts.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.