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Petrobras, Ibovespa Recover -- Mid-Month IPCA Inflation

BRAZIL

Yesterday saw the Real marginally firmer as local assets pared losses following Monday's blowout price action. Petrobras retraced 12% higher and helped Ibovespa gain 2.25% on the session. The DI swap curve shifted lower between 5-16 basis points.


Many analysts have adjusted their calls for the BCB on March 17th amid the local developments with market pricing now suggesting a 50 basis points rate hike may be the most probable outcome.


Brazil also reports mid-month IPCA inflation at the top of the hour (Times GMT/ET):

  • 24-Feb 1200/0700 Brazil Mid-month IPCA Inflation** (Expected 4.59% y/y vs 4.30% prior)
  • 24-Feb 1200/0700 Brazil Mid-month IPCA Inflation** (Expected 0.5% m/m vs 0.78% prior)

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