CANADA TO PUBLISH FISCAL UPDATE ON DEC. 16

MNI BRIEF: Inflation Expectations Tick Higher - NY Fed

MNI BRIEF: China Passenger Car Sales Up In November Y/Y

MNI BRIEF: Mexico Inflation Down To 4.55% In November

MNI China Daily Summary: Monday, December 9

MNI BRIEF: China To Strengthen Policy Easing In 2025: Poliburo

EZ/UK Bond Supply Calendar: Austria, UK Auction on Tuesday

EZ/UK T-Bill Calendar: Spain, Belgium Auction on Tuesday

MNI:US OCT WHOLESALE INV 0.2%; SALES -0.1%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

Itaú Note Statement Full Of Hawkish Twists In The Prospective Scenario

BRAZIL
  • Importantly, the committee kept the message that it will stick to easing at the present 50-bp pace in the coming meetings, which presumably extends the run until the first policy meeting in 2024.
  • But the statement is full of hawkish twists in the prospective scenario, ranging from an adverse, troubled, global environment, to incomplete re-anchoring of expectations. Moreover, the authorities stressed that the terminal rate hinges on a better inflationary outlook.
  • This, coupled with a somewhat surprising increase in the 2025 inflation forecast, to 3.2%, hints at concern about market expectations for the terminal rate. Given the central bank’s communication, the unsettled global scenario, as well as the uptick in domestic policy uncertainty, Itaú now expect the Copom to take the Selic to 9.50% pa by the end of the cycle, and to end this year at 11.75% pa. Markets will learn more about the committee’s rationale with the release of the meeting minutes next Tuesday.
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.