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Copom Minutes, IPCA April Inflation

BRAZIL
  • USDBRL had a very muted session yesterday, closing broadly unchanged and confined to a 5.20-5.25 session range. Two main events today are the minutes from last weeks Copom meeting at the top of the hour, followed by IPCA inflation for April.
  • As a reminder the Copom hiked the Selic rate by 75 basis points last Wednesday to 3.5%. The committee saw it as probable another hike of the same magnitude would be necessary. The marginally hawkish announcement in the statement was countered by the continued inclusion of the phrase 'partial normalisation'. Clues relating to the potential depth of the normalisation cycle as well as details on the economic outlook will be the focus for market participants.
  • TODAY:
    • 11-May 1300BST/0800ET – IBGE Inflation IPCA (Est 0.29% m/m vs 0.93% prior)
    • 11-May 1300BST/0800ET – IBGE Inflation IPCA (Est 6.74% y/y vs 6.10% prior)
  • Treasury auctions of inflation-linked NTN-B local notes due 2024, 2028 and 2040
  • Economy Minister Guedes in Brasilia: 10am - Attends virtual hearing on administrative reform.

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