During its latest monetary policy meeting, the Central Bank of Brazil’s monetary policy Committee (Copom) kept the benchmark interest rate on hold at 14.25 percent, as was widely anticipated. However, the statement, which appears to be a welcome change brought in by the new central bank President Ilan Goldfajn, mainly highlighted the Central Bank of Brazil’s lack of confidence in its own medium-term inflation path, said Societe Generale in a research report.
The lack of confidence mainly stems from the existing uncertainty regarding the degree and success of the fiscal adjustments, added Societe Generale. This is a clear threat to the projection of policy easing starting in August; however, it does not alter the projection of the interest rate reaching 13.5 percent by the end of 2016. The upcoming release of the July Copom meeting is likely to provide some insight, stated Societe Generale.


BOJ Rate Hike Expectations Rise Ahead of September Meeting
Japan Services Producer Prices Rise 3.2% in June, Supporting BOJ Rate Hike Expectations
BOJ Rate Decision in Focus as Sticky Inflation, Weak Yen Shape USD/JPY and Nikkei Outlook
Brazil Cuts Selic Rate to 14% as Inflation Eases but Risks Persist
Japan PM Sanae Takaichi Unveils Growth Plan as BOJ Independence Concerns Lift Bond Yields
China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 



