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2 Mar 2015
Brazil might see a rate hike this week – TDS
FXStreet (Barcelona) - The TD Securities Team expects the Brazilian central bank to hike rates by 50bp to 12.75% this week.
Key Quotes
“On Wednesday, in Brazil we expect, in line with the consensus, the Selic rate to be hiked by 50bp to 12.75% on untamed CPI pressures.”
“But the fact that we now see the Selic rate at 13.25% by the end of tightening cycle also means that we see the possibility of rates cuts earlier than we had previously expected, which we expect to start early in 2016 or by the end of 2015 (-125bp in total).”
Key Quotes
“On Wednesday, in Brazil we expect, in line with the consensus, the Selic rate to be hiked by 50bp to 12.75% on untamed CPI pressures.”
“But the fact that we now see the Selic rate at 13.25% by the end of tightening cycle also means that we see the possibility of rates cuts earlier than we had previously expected, which we expect to start early in 2016 or by the end of 2015 (-125bp in total).”