May 14, 2018 |
Brazil's monetary policy committee (Copom) is due to meet this Wednesday and a sluggish business cycle and lower-than-expected headline and core inflation could see it cut interest rates by 25bp to 6.25%.
The recent pressure on the Brazilian real, however, and wider EM volatility will likely lead Copom to harden language and suggest it long easing cycle is now over, said Alberto Ramos from Goldman Sachs.
Ramos predicted a 10% to 15% probability that Copom would not cut the Selic interest rate
Brazil expects to cut rates 25bp while Mexico's central bank is on track to hold at 7.5%