- Analytics
- News and Tools
- Market News
- BRL's strong level is justified – Commerzbank
BRL's strong level is justified – Commerzbank
Economists at Commerzbank analyze BRL outlook following Brazilian inflation figures.
Inflation rate confirms BCB's path of rate cuts
Brazil's inflation rate rose as expected in August, but monthly inflation was slightly below expectations. In light of this development, even the most skeptical should forgive the Banco Central do Brasil (BCB) for kicking off the rate-cutting cycle last month with a surprisingly sharp 50 bps cut.
Furthermore, with inflation expected to remain below 5% for the time being, the expected further 50 bps easing at each of the remaining three meetings this year to a policy rate of 11.75% by year-end is, in our view, far from aggressive. We therefore continue to believe that the Brazilian Real's strong level is justified for now.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
