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Copom Decision Due – Final Hike In Question

BRAZIL
  • Brazil Central Bank Preview – Wednesday, 2230BST/1730ET
  • The BCB are believed to be either at or very close to the peak of its tightening cycle that has seen the Selic rate raised 1175bps to 13.75%.
  • Annual headline inflation has begun to reverse substantially, and inflation expectations have followed suit. This has led consensus to believe the BCB have concluded policy tightening already.
  • Nonetheless, continued pressure on services and core inflation alongside above-expectation growth indicators have prompted some to forecast a cycle ending 25bp hike, bringing the Selic rate to 14.00%.
  • The full preview with analyst views can be found here: https://roar-assets-auto.rbl.ms/documents/18425/MNI%20Brazil%20Central%20Bank%20Preview%20-%20September%202022.pdf

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