BRAZIL: BCB Cuts "Nowhere in Sight" According to BBG Story
Oct-23 14:33
"*BRAZIL CENBANK RATE CUTS NOWHERE IN SIGHT, EX-OFFICIALS SAY" - bbg
- Piece writes that: "Brazil’s central bank could delay its long-awaited interest rate cuts further into 2026 given the institution is waging a solo fight against inflation, according to economists and former policymakers.
- “A more spendthrift fiscal policy could lead the central bank to delay the start of interest rate cuts,” said Gustavo Loyola, a partner at the consultancy Tendencias who was central bank governor between 1992 and 1993. “Brazil’s central bank is practically isolated in this fight against inflation.” - Bloomberg
- We ran an interview with the former deputy governor for international affairs Alexandre Schwartsman back on October 6th, who said he sees the BCB as "likely to hold its interest rate at 15.00% at least until the first quarter of 2026, when the board's inflation forecasts may start to show convergence toward the 3% target"
- This is consistent with the view expressed here: "He predicts that the Selic rate, currently at an almost two-decade high of 15%, will only begin to decline in the first quarter of 2026."
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EGB OPTIONS: Schatz Call Spread Seller
Sep-23 14:27
DUZ5 107.00/107.30cs 1x2, sold at 4 and 3.75 in 5k.
EGB SYNDICATION: New 8-year OT / 3.625% Jun-54 OT tap: Priced
Sep-23 14:12
New 8-year OT
- Reoffer: 99.391 to yield 2.961%
- More to follow
- Spread: MS+37bps (guidance was MS+39bps area)
- Issue size: E3.5bln (a little higher than the E3bln MNI expected)
- Books closed in excess of E46bln (in E1.85bln JLM interest)
- HR 100% vs 2.60% Aug-33 Bund. Ref: 100.10 / +37.6bp
- Maturity: 14 October 2033
- Coupon: 2.875%, Long First
- ISIN: PTOTEQOE0023
- Timing: TOE 14:41BST / 15:41CET. FTT immediately
3.625% Jun-54 OT:
- Reoffer: 92.929 to yield 4.045%
- More to follow
- Issue size: E1.5bln (the middle of the E1-2bln range MNI expected)
- Books closed in excess of E35bln (in E875mln JLM interest)
- HR 97% vs 2.50% Aug-54 Bund. Ref: 84.76 / +71.6bp
- Spread: MS+110bps (guidance was MS+112bps area)
- ISIN: PTOTE3OE0025
- Timing: TOE 14:42BST / 15:42CET. FTT immediately
For both:
- Settlement: 30-September-2025 (T+5)
- Bookrunners: Barclays(B&D/DM)/BNPP/CAIXABI/CITI/CACIB/JPM
From market source / MNI colour
MNI EXCLUSIVE: Riksbank Governor Speaks to MNI
Sep-23 14:09
Riksbank Governor Erik Thedeen talks to MNI about the outlook for the policy rate and the central bank's balance sheet.- On MNI Policy MainWire now, for more details please contact sales@marketnews.com
