Brazil's inflation picture vs. Selic rate

asked by u/elena_schneider · 3d · 1 answers

While $USDBRL is showing some retracement today to 5.1463, the domestic inflation outlook in Brazil remains a concern. The central bank has been quite aggressive, but the pass-through effects of global commodity prices and fiscal uncertainty are keeping a lid on any substantial rate cuts. How are others viewing the risk premium for BRL assets?

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  • u/rossi_eva· 9 pts· 3d

    I agree, the inflation story is still a big overhang. The BCB is in a tough spot – high rates are painful for growth, but easing too soon could backfire big time. I'm staying cautious on BRL-denominated assets for now.