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Itaú Raises Brazil CPI and Rates Forecasts, Cuts Growth Outlook

BRAZIL

In a note to clients:

  • 2021 Inflation estimate raised to 8.4% from 7.7%
  • 2022 Inflation estimate raised to 4.2% from 3.9%
  • Itaú says to expect a tighter monetary conditions, with the central bank hiking three consecutive times by 100 bps in the next meetings, and by 0.75 point in the last one, taking the overnight rate to 9%
  • GDP estimate cut to 5.3% from 5.7% in 2021, and to 0.5% from 1.5% in 2022 (via Bloomberg)

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