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Copom Expected To Leave Selic Rate Unchanged

BRAZIL
  • On Wednesday, the BCB are expected to keep the Selic rate unchanged at 13.75%. Just one analyst is calling for a 25bp rate cut at this meeting. Despite the annual rate of inflation falling to 4.16% and consistent verbal criticism from the Lula administration on the need for lower rates, the BCB committee remain resolute with its approach to maintaining the current restrictive stance.
  • The first US delegation to visit Brazil since President Lula’s high-profile trip China last month is highlighting the different approach that the world’s two largest economies are taking to investment in Brazil.
  • Without mentioning China by name, Linda Thomas-Greenfield, the US ambassador to the UN, said American investment in Brazil isn’t “just some fluffy, flashy announcements.”
  • Speaking in Brasilia on Tuesday, she said US investment supports more than 700,000 high quality jobs as part of what she described as the “long-term strategic relationship that we have with Brazil.” (BBG)

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