CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.

Brazil: BCB to signal easing ahead – Rabobank

2019-06-19 21:30

Rabobank analysts are expecting that the Copom is likely to hold the Selic rate at the historical low of 6.50%.



Key Quotes



“Despite the increasing chances for (what we would view as "insurance") rate cuts later this year – after some clarity on approval of an effective pension reform – we believe this is still too soon for the BCB to signal easing ahead.”



“Despite some modest recent improvement in the balance of risks for inflation, we believe the baseline scenario still warrants (keeping) a neutral approach.”



“Although local financial conditions improved since the last meeting, there is still a high degree of uncertainty in both global and domestic themes.”



“In terms of policy guidance, we see the Copom reiterating an expansionary monetary policy stance currently (i.e. interest rate seen below neutral), with activity weakness still associated with structural headwinds and recent shocks. No commitment to the next steps is expected.”



“Looking a bit further out, we are leaning towards a scenario where the BCB opts to cut rate (in “fast-act” mode) sometime in 19Q4, after a pension reform approval at Lower House. Our scenario – which until now had been projecting stable policy rate at 6.50% by mid-2021 – is currently under revision.”


This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.

Economic news

    Exchange Rates

    GBPUSD +0.08% 1.30241
    EURUSD +0.03% 1.18147
    XAUUSD +0.14% 1904.55
    XTIUSD +0.22% 38.79
    NAS100 +0.15% 11536
    US30 +0.22% 27766.8