The larger-than-expected drop in Brazilian inflation in November, to 4.1% y/y (from 4.6% y/y in October), reinforces our view that Copom won’t rush to tighten policy. We expect the Selic rate to be left unchanged at Wednesday’s meeting, and have pencilled in a first hike in Q1 2019. Meanwhile, inflation data from Chile were soft too, but a rate hike in January still looks more likely than not.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services