Brazil: Signals for more easing ahead – Rabobank

The BCB extraordinarily brought forward from Tuesday to Monday the publication of the minutes regarding the 17-18 March Copom policy meeting, strategists at Rabobank brief. USD/BRL trades at 5.095.

Key quotes

“The minutes suggest the Copom signals room for more easing ahead by conveying much more concern about Covid-19 than the statement issued after the latest Copom meeting.”

“We now look for at least one more rate cut of 50 bps (rather than a 25bp-cut) either at the next May meeting or even at an intermeeting decision before May, bringing the Selic rate at end-2020 down to 3.25%.”