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BCB Minutes Awaited For Any Signal Towards An August Cut

BRAZIL
  • The BCB will release the Copom minutes from the June meeting at 1200BST/0700ET. As a reminder, the Selic rate was kept unchanged at 13.75%, however, the language within the statement softened, paving the way towards an upcoming dovish pivot. Specifically, the Copom stated it “judges that the strategy of maintaining the Selic rate for a long period has been adequate to ensure the convergence of inflation”.
    • Our full review of said meeting is here.
  • Following the more neutral statement, market participants will analyse the minutes for any clues regarding the August decision and whether it is indeed a “live” meeting, or whether the market should place greater weight on the easing cycle commencing in September.

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