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In view of analysis team at Nomura, the Central Bank of Brazil (BCB) is likely to keep rates unchanged at 6.50% at its 31 October meeting – the same level that’s been in place since March.

Key Quotes

“With the very likely Jair Bolsonaro election victory in the second round (link), on 28 October, the risks associated to a weaker currency and potentially higher inflation expectations are much more contained and give the BCB increased room to keep rates at the current (expansionary) level into 2019, in our view.”