Brazil: Expect a less hawkish hold from BCB - TDS

Sacha Tihanyi, Senior EM Strategist at TD Securities, expects the BCB to hold on rates, but with a slightly less hawkish tilt as we see reason for the two dissents for a 50bp rate hike to be removed.

Key Quotes

“Following the lower house impeachment vote the market continues to aggressively price-in rate cuts from the BCB, with near 150bps seen by early December; aggressive in our view given the uncertainty over the potential fiscal adjustment.”