Brazil | The risk of further monetary tightening raises as the fiscal situation worsens
Published on Thursday, December 3, 2015
Brazil | The risk of further monetary tightening raises as the fiscal situation worsens
Summary
The COPOM suggested that it will increase interest rates if the fiscal situation deteriorates further, which is more likely now after the launching of the impeachment process of President Rousseff. Anyway, our base scenario is for a stable Selic ahead, which was supported by the COPOM's forecast of inflation around the target in 2017, the monetary policy relevant horizon.
Geographies
- Geography Tags
- Latin America
- Brazil
Topics
- Topic Tags
- Macroeconomic Analysis
Authors
Enestor Dos Santos
BBVA Research - Principal Economist