23 Dec 2015
Brazil: BCB Q4 inflation report on deck – TDS
FXStreet (Delhi) – Sacha Tihanyi, Senior Emerging Markets Strategist at TDS, suggests that today the Banco Central Do Brasil releases its Q4 inflation report, approximately one month before the next COPOM meeting.
Key Quotes
“Any change in the inflation projections should be weighed with greater seri-ousness in the policy outlook given the stronger numerical guidance that the COPOM gave in the November meeting minutes, augmenting its monetary policy stance rhetoric to sound more resolute and inflation target-focused. COPOM changed its stated aim on inflation from bringing it to the 4.5% target “in the relevant horizon for the monetary policy” to “as close as possible to 4.5% in 2016, and to make inflation converge to the 4.5% target in 2017.”
“This shift suggests that any increase in the inflation outlook in 2016 and 2017 relative to the baseline scenario, will carry very strong implications for monetary policy.”
Key Quotes
“Any change in the inflation projections should be weighed with greater seri-ousness in the policy outlook given the stronger numerical guidance that the COPOM gave in the November meeting minutes, augmenting its monetary policy stance rhetoric to sound more resolute and inflation target-focused. COPOM changed its stated aim on inflation from bringing it to the 4.5% target “in the relevant horizon for the monetary policy” to “as close as possible to 4.5% in 2016, and to make inflation converge to the 4.5% target in 2017.”
“This shift suggests that any increase in the inflation outlook in 2016 and 2017 relative to the baseline scenario, will carry very strong implications for monetary policy.”