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March IPCA Inflation Due Friday, Lula Meets Union Representatives

BRAZIL
  • The focus this week domestically will be on Friday’s release of March IPCA inflation data where the annual headline rate is expected to reach 11.00%. Markets have adjusted their calls for further hikes beyond the May 4 meeting as the BCB has hinted that another 100bp hike may be enough.
    • Market participants will pay attention to the data for any further upside surprises, however, analysts appear to be noting that policy makers may have reached a waiting point where the effects of tighter policy need to materialise.
  • Former President Luiz Inacio Lula da Silva meets with representatives of workers’ union CUT in Sao Paulo at 10am. Union is expected to pitch ideas for Lula’s presidential campaign ahead of the October elections.
  • On Friday, it was announced that Brazil‘s Central Bank will not release its weekly Focus survey this Monday as workers continue to strike, the monetary authority said in a text message.
    • Besides the Focus survey, the disclosure of the so-called Indeco and the Savings Report is also suspended.
  • Petrobras: Rodolfo Landim, the former chief executive officer of fuel distributor BR Distribuidora, has withdrawn from being appointed chair of the board of directors of Latin America’s biggest oil producer, Petroleo Brasileiro SA.
    • Landim sent a letter to the Brazil’s Energy Minister, Bento Albuquerque stating his decision to give up the nomination to the position.

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