Brazil: BCB likely to ease by 75bps – TDS

At today’s COPOM meeting, analysts at TDS forecast that the BCB will ease by 75bps, bringing the Selic rate to 7.5%.

Key Quotes

“This is in line with the unanimous consensus. We also believe that COPOM will indicate a further taper and the final cut of the easing cycle at the December meeting. There is some degree of risk that this current meeting will bring the final cut (of possibly greater magnitude than 75bps), given that temporary factors (food prices) suppressing inflation are beginning to ebb out of the year-on-year read.”