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Copom Leaves Selic Rate Unchanged at 2.00%

BCB

Decision as expected. Early headlines suggest tweak/removal of guidance conditions soon as MNI suggested.

  • BRAZIL CENBANK:GUIDANCE CONDITIONS MAY SOON NOT BE SATISFIED
  • FORWARD GUIDANCE REMOVAL DOESN'T MEAN RATE HIKE
  • OUTLOOK STILL REQUIRES EXTRAORDINARILY HIGH STIMULUS
  • STILL SEES FORWARD GUIDANCE CONDITIONS MET NOW
  • LATEST INFLATION READINGS ABOVE EXPECTATIONS
  • BRAZIL CENBANK KEEPS MONITORING INFLATION TRENDS W/RIGOR
Definitely on the hawkish side. Developments in inflation and the fiscal trajectory will be even more closely scrutinised over the coming weeks.

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