Brazil Weekly Review

This report covers the macroeconomic landscape for Brazil, focusing on the provisional U.S.-Iran agreement, local inflation, and monetary policy expectations ahead of the June Copom decision.

Key Takeaways

• 1.The U.S. and Iran reached a provisional agreement to reopen the Strait of Hormuz, though geopolitical risks remain elevated due to regional opposition and unresolved negotiation points.
• 2.Rabobank expects the Copom to cut the Selic rate by 25bps to 14.25% at the June meeting, while maintaining a cautious stance amidst inflation pressures.
• 3.Inflation in Brazil remains pressured, with May IPCA rising 0.58% m/m and the 12-month rate exceeding the upper bound of the target range.

Table of Contents

• Week of 08 a 12 de June: highlights
• Our scenario (vs. consensus): an update
• Brazilian asset markets update

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