MNI BRIEF: China Visitor Mobile Payments Surge in H1

MNI China Daily Summary: Friday, July 26

MNI BRIEF: Foreign Firms Content In China

MNI BRIEF: Turkish Inflation Expectations Steady- TEBA

MNI China Press Digest July 26: Deposit Rates, Fiscal, PBOC

MNI: PBOC Net Injects CNY299.05 Bln via OMO Fri

MNI: BAKER HUGHES US RIG COUNT 589; OIL RIGS 482; GAS RIGS 101

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL JUL INDEX 66.4

EZ/UK Bond Supply Calendar: BoE Short APF Operation on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Goldman Sachs Expect Steady And Patient Copom

BRAZIL
  • Brazil is the economy where inflation has improved the most (driven to a significant extent by fiscally costly tax cuts) and rates have also clearly peaked. The September IPCA printed at -0.29% mom, the third consecutive negative print, and only marginally higher than the -0.33% Bloomberg consensus.
  • The negative Sep print was driven by the impact of gasoline price cuts and federal and state level tax cuts which led to declining fuel prices, and electricity and telecommunication tariffs. Core inflation moderated at the margin to 0.41%. Goldman Sachs highlight that vehicle fuels (an item with a 7.7% weight in the IPCA index) now has a significant negative contribution to annual headline inflation following large fuel tax cuts and significant gasoline price cuts in recent months.
  • The Copom delivered a hawkish hold at 13.75% in September, bringing the long and deep hiking cycle to an end. In GS’ assessment, the most likely scenario is for the Copom to be steady and patient and hold the policy rate at the current significantly restrictive monetary stance for a while. Consistently, GS expect the Copom to wait until late 2Q2023, or possibly 3Q2023, to start to cut rates.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.