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Brazil | COPOM still sees 2016 inflation above 4.5%; monetary tightening to continue ahead

Published on Wednesday, June 24, 2015

Brazil | COPOM still sees 2016 inflation above 4.5%; monetary tightening to continue ahead

Summary

The 2Q15 Inflation Report revealed that the COPOM expects inflation to close 2015 at 9.0%, decline to 4.8% at the end of 2016 and converge to the 4.5% target only in 2Q17. As its focus is on taking inflation to the target by the end of 2016, its forecasts suggest it will continue tightening monetary policy ahead. We now expect another 50bp hike of the Selic rate in July.

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Authors

Enestor Dos Santos BBVA Research - Principal Economist

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Report (PDF)

67413_82079.pdf

English - June 24, 2015

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