Although the domestic labor market remains strong, underlying inflation makes space for the last cut in the Selic rate. – 05/31
April labor market data continued to positively surprise. However, current inflation continues to indicate a more constructive trajectory for underlying inflation, creating room for an additional 25 bps cut at the June meeting and stability at the 10.25% level until next year.
In the external scenario, along with the revision of the 1st quarter GDP, April inflation data indicate that U.S. consumption is slowing down.
For more information, please check our Weekly Report 66.
