Ungated Post | 07 Aug 2020
Chart of the week: Why ending the easing cycle in Brazil now would be a mistake
Innes McFee
Managing Director of Macro and Investor Services
This week the Banco Central do Brasil (BCB) lowered the Selic rate to 2.00%. Although our baseline scenario is for further rate cuts in the coming months, our Taylor rule suggests that rates should go even lower, between zero and 1%. We continue to believe the BCB will eventually be forced to cut rates again in the coming months and it won’t need to hike by as much as markets currently price in.
Tags:
You may be interested in
Post
Anchors away – RBA change course and raise rates
The RBA has opted to raise the cash rate target to 0.35%. For some time, the RBA identified faster wage growth as its trigger for raising rates. Official data sources have provided no new information on this front over the past month. But the board has put their faith in information from the RBA business liaison program that wage growth is picking up.
Find Out More
Post
Introducing our new US Real Estate Economics Service
The new US Real Estate Economics Service helps companies understand the implications of macroeconomic, geopolitical, financial and climate change on private and public real estate performance in the US. The first globally consistent and independent set of real estate forecasts, the service offers regular analysis and commentary from our highly experienced team of real estate economists.
Find Out More
Post
Announcing the launch of our new website
We are pleased to announce the launch of our new My Oxford research portal. This will represent a major improvement for clients in the way that they access and interact with our research.
Find Out More