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Analysts at Nomura point out that the Central Bank of Brazil (BCB) meets today and they expect a decision to leave the policy Selic rate unchanged at 6.50% − the same level since March.

Key Quotes

“Given the uncertainties surrounding the presidential election and the potential for fairly binary outcomes with significantly different market implications, we believe the BCB will not make any straightforward indication of its next steps before the election is over.”

“We continue to believe, however, that a market-unfriendly election result would lead to a hike at the 31 October meeting.”