Brazil: BCB’s dovish outlook likely to reflect in Copom minutes - TDS

In view of analysts at TD Securities, Brazil’s Copom minutes are expected to validate the increasingly dovish outlook for the BCB going into 2019.

Key Quotes

“The downward revision in inflation expectations, combined with very unenthusiastic inflation outcomes, has led the market to back off of its aggressive hiking path from just three months ago.”

“We see it likely that the market may be forced to revise out further any bias for hikes within the first six months, and currently have our rate forecast under review.”