Brazil: Do not expect the BCB to hike - Nomura

Analysts at Nomura suggest that while they do not expect the BCB to hike at its 20 June meeting, assuming USD/BRL does not once again venture above 3.90 ahead of the meeting.

Key Quotes

“We believe the tightening cycle that we were previously expecting only for 2019 will begin this year. In our view, this will depend on currency movements and the election outcome, and we may need to revisit this call depending on how these two variables evolve.”