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BCB On Higher Selic Rate Discussion

BRAZIL

*Brazil fiscal scenario showing small change vs 2020

*It's natural to expect removal of stimulus

*Discussion on higher Selic to occur sometime

*Still seeing stimulus as suitable now


The Central Bank seem to be tempering any bias towards overly hawkish expectations for the first meeting of the year. This would make sense to see how the fiscal situation develops in February and also buy some time to see any potential transitory effects in inflation.

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