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GDP growth forecast for the Brazilian economy also succumbs to Covid-19. USD/BRL is trading at 5.345.

Key quotes

“Agents’ expectations in March exacerbate Covid-19 fears triggering our 2020 GDP growth forecast revision from +1.8% down to -1.2%.”

“In the realm of inflation, IBGE releases March IPCA report on Thursday, and we expect a gain of 0.15% m/m.”

“Our estimate implies that the annual change will recede to 3.4% y/y (from: 4.0% y/y), bringing the headline back well below the BCB’s mid-target (of 4.00%) for 2020.”