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MNI Copom Preview - Decision Due In Around 2 Hours

BRAZIL
  • Roughly 2 hours until the BCB Decision:
  • After holding rates in September, the consensus view remains that the Copom has ended its tightening cycle. Despite two members voting for a 25bp hike at that meeting, MNI expects a unanimous decision to keep rates unchanged this week at 13.75% as both IPCA readings and inflation expectations continue to moderate.
  • With the global inflation outlook remaining difficult, continued hawkish rhetoric from the central bank should accompany the decision. Updated inflation forecasts may also provide some clues as to when the Copom might begin monetary easing next year.
  • Full PDF including analyst views here: https://roar-assets-auto.rbl.ms/documents/19874/MNI%20Brazil%20Central%20Bank%20Preview%20-%20October%202022.pdf

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