🔆 BUYSIDEBRAZIL | WEEKLY REPORT Core inflation eases, reinforcing our expectation of another Selic rate cut – 07/10
✅ June IPCA came in below expectations and showed a more benign composition, reinforcing the ongoing disinflation process, with food prices declining and underlying inflation measures easing. Together with the stabilization in oil prices, the release may help reduce inflation expectations and reinforces our baseline scenario of another Selic rate cut.
✅ On the international front, the FOMC minutes reinforced a more hawkish stance, indicating that the Federal Reserve continues to prioritize inflation risks despite the recent easing in oil prices following progress in negotiations between the United States and Iran. While geopolitical tensions remain the main source of uncertainty, stable oil prices reduce global inflationary pressures and may support future discussions on monetary easing.
