The Brazilian Central Bank’s (BCB’s) cautious statement from last night’s meeting will disappoint the markets, which had expected Copom to lay the ground for the start of an easing cycle. With the economy probably now in recession and inflation falling, we expect one 25bp rate cut this year. But the markets, which are now pricing in 75bp of cuts this year, have probably got ahead of themselves.
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