Copom opted for a more cautious stance, however, we kept the Selic rate at 8.75% at the end of the cycle
The Central Bank altered its guidance, restricting itself only to the next step in monetary policy. Now, members anticipate only a further reduction of the same magnitude, although they have recognized that the baseline scenario has not shown substantial changes. Thus, we maintain the expectation that the terminal point of the cycle will be 8.75%, but with some smoothing in the last meetings.
Externally, maintaining our scenario for Fed Funds also supports this view for domestic interest rates.
Finally, the result of federal revenue for February came in line with our expectations, at R$ 186.5 billion.
For more information, please check our Weekly Report 56.
