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Focus On Tomorrow's Mid-Month Inflation Before Next Copom Decision

BRAZIL
  • Improved sentiment led a second straight week of gains for the Brazilian Real and a notable shift lower in the DI curve with 5-yr local swap rates dropping by another 25 basis points, in the week ending April 23.
  • The focus this week turns to IPCA mid-month inflation data, due to be released tomorrow. This will be the final reading before the next COPOM decision due May 5th. At this meeting, consensus forecast is for another 75 basis points rate hike, bringing the Selic Rate to 3.5%.
  • Data Today:
    • 26-Apr 1330/0830 – Brazil March Current Account Balance (Est. -$2.5B vs -$2.3B Prior)

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