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BRAZIL: BCB Expected To Stand Pat Next Week, Vote Split Eyed

BRAZIL
  • Rising domestic fiscal pressures and the associated sharp weakness for Brazilian assets have prompted markets to no longer forecast further policy easing from the BCB. Combining this with the recent de-anchoring of medium and long-term inflation expectations, the Copom is expected to stand-pat and provide hawkish rhetoric to help stabilise markets. A lack of unanimity in May will also place the spotlight on the upcoming vote-split.
  • A full MNI preview will be published on Tuesday next week.

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