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8 May 2015
Further tightening expected in Brazil – BBH
FXStreet (Edinburgh) - The research team at BBH sees further tightening conditions in the Brazilian monetary economy.
Key Quotes
“The Brazilian central bank indicated less FX swaps and more monetary tightening”.
“Late last week, the central bank decided to reduce the rollover amount of its FX swaps, which effectively support the currency”.
“The central bank made the move after the dollar’s enthusiastic break below BRL 3.00, suggesting a smaller concern about further BRL weakness”.
“Part of this is probably related to building expectations for another 50 bp increase in rates at the June 3 meeting”.
“This is a view that the minutes to the previous meeting only reinforced – or at least did little to persuade markets otherwise”.
Key Quotes
“The Brazilian central bank indicated less FX swaps and more monetary tightening”.
“Late last week, the central bank decided to reduce the rollover amount of its FX swaps, which effectively support the currency”.
“The central bank made the move after the dollar’s enthusiastic break below BRL 3.00, suggesting a smaller concern about further BRL weakness”.
“Part of this is probably related to building expectations for another 50 bp increase in rates at the June 3 meeting”.
“This is a view that the minutes to the previous meeting only reinforced – or at least did little to persuade markets otherwise”.