More fiscal news to come from Brazil

The week in Brazil should start focused on the cut in expenditures that the government should announce by Thursday; local news sources say that the government will have a meeting this Sunday to discuss a cut of up to BRL80bn, the largest in recent years. 

On the same day, the unemployment rate for April (consensus: 6.3%) and the monthly GDP proxy for March (consensus: -0.50% m/m sa) are scheduled for release.

This data set of tighter fiscal and weak activity should increase the likelihood of the BCB reducing the pace of tightening at the next meeting to 25bp, according to Barclays.