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Uncertainty Remains Over Budget, IPCA Inflation Friday

BRAZIL
  • The Real closed 0.75% higher on Monday as equity indices continued to make fresh highs. Improved sentiment comes amid a backdrop of uncertainty regarding the budget and continued deterioration of the President's approval rating.
  • Friday's March IPCA inflation report will be important for market participants. With the annual figure expected to surge above 6%, the data will be important for markets as the consensus remains for another 75-basis points rate hike at the May meeting.
  • Today, Treasury auctions of inflation-linked NTN-B local notes due 2026, 2030 and 2055
  • Potential headlines as Economy Minister Guedes and Central bank's Campos Neto are attending meetings in Brasilia all day, including BRICS Finance Ministers, Central bankers meeting.

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