Copom’s Decision Should Be Accompanied by a Hawkish Statement, Indicating Data Dependence in Upcoming Meetings (03/14)
Next week, the Copom will raise interest rates by 1 percentage point, as previously anticipated. We believe the Committee will choose to remain data-dependent going forward but will still maintain a hawkish tone to emphasize its commitment to controlling inflation.
From the perspective of current data, a cautious message for monetary policy still prevails, although this week’s results have reinforced the narrative of an ongoing economic slowdown at the beginning of this year.
In the U.S., assets remain volatile in line with the uncertainties driven by political news. From an economic data standpoint, the message is that the Fed is likely to keep interest rates unchanged again at next week’s FOMC meeting.
For more information, please check our Weekly Report 104
