Goldman Sachs Eyeing Hints On Appropriate Speed Of Normalisation

Goldman Sachs on BCB Minutes:

• GS do not expect major innovations in the minutes and expect the minutes to reiterate the post meeting policy statement message and policy signals.
• However, they will be looking for hints and or discussion on the appropriate speed of policy normalization, i.e., whether the signalled "normalization to neutral" should be frontloaded or more gradual in order to mitigate the impact on the recovering real activity.
• In addition, they will be looking for a broader discussion about whether the more resilient than expected performance of real activity during 1H2021, rising cost-push pressure on consumer prices, and unsettled political dynamics could eventually lead to central bank to go beyond full normalization of monetary policy.