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HSBC revise BRL forecasts - still bearish, but less negative

BRAZILIAN REAL
  • Year-end 2020 revised to 5.75 from 6.00 previously
  • Year-end 2021 revised to 6.00 from 6.20 previously

HSBC cite a faster than expected economic recovery (resulting in the bank boosted their GDP forecasts). They see the BCB's easing cycle as complete, but low (or negative) real rates and fiscal deterioration will be a drag on BRL going forward.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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