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BCB See Inflation Expectations Partially Re-Anchoring

BRAZIL
  • The Brazilian Central Bank continue to present their findings from the quarterly inflation report, stating that they see a partial re-anchoring of CPI expectations.
  • Recall this morning's quarterly inflation report: showed the bank sees a faster clip for growth this year, however incorporated a slowdown in activity to take hold in 2024.* The bank’s forecasts show 2023 GDP forecasts upped to 2.9% from 2.0%, with 2024 growth at 1.8%. Their new 2026 inflation projection comes in at 3.1% - above the BCB target.
  • Separately, the Brazilian finance minister Haddad states that there is no date yet for the next meeting due to be held with BCB chief Campos Neto.
  • Follows yesterday’s meeting between the BCB Chief Campos Neto and the President Lula, who met to “calm things down”, according to Valor sources. Haddad claimed the meeting was “productive and cordial”, and should lead to more regular meetings.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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