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Brazil Is Analysing Last Surprise On Inflation: Campos Neto

BRAZIL

Campos Neto Says Analysing Last Surprise On Inflation, Swap Rates Spike

  • This is in reference to Friday’s IPCA figures that came in well above expectations. With the latest annual print reaching 11.30% (versus an 11.00% estimate and 10.54% prior reading), this may be emboldening calls for an extension of the tightening cycle beyond May, despite BCB rhetoric previously suggesting a final hike at the next meeting may be enough.
  • The comments have lent support to the Brazilian Real that had opened a little softer to start the week and prompted local DI swap rates to spike.
  • Latest: *BRAZIL INFLATION IS VERY HIGH, CORE INFLATION HIGH: CAMPOS NETO (BBG)

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