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Campos Neto Reiterates Using All Tools Against Inflation

BRAZIL
  • Late Friday, Central Bank Head Roberto Campos Neto said unanchored inflation is the most disruptive factor for economic growth.
    • He added there is still a lot of uncertainty regarding 2021 2nd half and the central bank are trying to be transparent in their approach, using all tools to reach the 3% 2024 inflation target.
  • USDBRL took a breath on Friday, after depreciating significantly in recent weeks. An important weekly close below 5.00 should please technical bears, as the fundamental backdrop appears to be supporting the move as well. Markets continue to expect aggressive action from the central bank, with some analysts calling for a 100 bps rate hike at the August meeting.
  • National Treasury unveils its May debt report at 1330BST/0830ET and discussed in a press conference led by general coordinator of public debt operations, Luis Felipe Vital.
  • Outstanding Loans for May (Estimate 0.7% vs 0.5% Prior)
  • Central bank releases Focus survey, with analysts' estimates for GDP, FX, inflation and Selic rate, on its website at 1225BST/0825ET.

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