Free Trial

Scotiabank Expect This Week’s Hike Will Likely Be Flagged As The Last

BRAZIL
  • The BCB will meet on Wednesday and most market participants will be looking for a signal around where the bank stands on its rate hiking cycle.
  • One more hike is all but guaranteed (consensus +50bps; BNS +75bps), which would bring the Selic rate from the current 12.75% to the 13.25–13.50% range. The question from here is whether the cycle is complete, or a continuation of further tightening is ahead.
  • It’s likely that this week’s hike will be flagged as the last, as messaging at the May meeting hinted toward this outcome.
  • However, expect the bank to flag current inflation, elevated inflation expectations, and proposed fiscal policies alongside the October general elections as reasons for potential hikes down the road.

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.