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Analysts at TD Securities are expecting the BCB to remain on hold today, keeping the Selic rate at 6.50%.

Key Quotes

“We see the central bank as being highly unlikely to respond to the supply-driven shock to inflation (trucker’s strike), given the coincidental negative growth implications.”

“While we don’t believe the BCB would have felt pressure to hike rates to help stabilize the real during the May and June USD rally, the easing in pressure on BRL and recent propensity to appreciate creates additional space for the central bank to communicate a non-hawkish tone to the market.”