VIEW: Sell-side comments on the Brazilian....>

BRAZIL: VIEW: Sell-side comments on the Brazilian central bank & what comes

next:

- J.P.Morgan: We keep with the same view that the SELIC rate will reach 2.5%

next month, staying at these levels for more than a year.

- Goldman: At this stage, given the decisive guidance we believe that no cut at

the next meeting is unlikely and based on the guidance and overall language of

the statement we are of the view that a -50bp or -75bp cut are roughly equally

likely, with risk perhaps slightly skewed towards a-50bp. In our assessment,

more than growth and inflation it will be the fiscal, FX, and capital account

developments that will be key to determine whether the Copom cuts another 75bp,

or less than that.

- TD Securities: Guidance in the statement suggests one final policy rate cut of

no larger than 75bps in June; we believe that we will see a 50bp rate cut and

then a hold on rates for the following 3 quarters.