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Haddad to Meet Senate Leader Pacheco Today

BRAZIL
  • The BCB’s weekly economic survey showed that longer-term inflation forecasts remained broadly unchanged, with analyst estimates for year-end inflation at 3.87% (vs. 3.90% previously). The year-end SELIC rate forecast was also unchanged at 9.0%, while the end 2025 SELIC forecast stayed at 8.50%. The BCB is due to meet next on Jan 31st, where another 50bp rate cut is widely expected. Later this week, Brazil will also publish retail sales (Weds) and economic activity (Thurs) data for November, where growth is expected to remain steady.
  • President Lula is due to meet Paraguay’s President amid the impasse over the Itaipu tariff at 1400GMT (0900ET). Also today, Finance minister Haddad will attend a meeting with the President of the Senate Pacheco at 2100GMT (1600ET) as negotiations between the government and Senate over the government’s plans to increase payroll taxes look set to continue.

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