🔆 BUYSIDEBRAZIL | WEEKLY REPORTExternal Uncertainty Sets the Stage for Super Wednesday – 12/06
✅ May inflation came in above expectations, but with a more benign composition, as the pressures were concentrated in volatile components, while core measures remained relatively contained. In this context, we maintain our expectation of a 25bps rate cut by Copom at its next meeting, although the combination of elevated inflation and unanchored expectations should lead the Central Bank to maintain a firm and cautious communication stance.
✅ On the international front, U.S. inflation data showed persistent pressures in industrial costs, but with still-limited pass-through to consumers. The main highlight, however, was the progress in negotiations between the United States and Iran, which increased optimism regarding the reopening of the Strait of Hormuz and temporarily reduced risks to global energy supply, amid expectations of a more hawkish stance from major central banks on Super Wednesday.
