BRL: Central bank a secondary driver for the real - ING

Ahead of today’s BACEN meeting, ING’s Chief LATAM Economist Gustavo Rangel notes that a wide-range of economic indicators are displaying stronger signs of a rebound in economic activity in Brazil.

Key Quotes

“This shouldn’t stop the central bank from cutting the policy rate at least once more today – which would take the SELIC rate to 6.75% (in line with consensus). Fade any $/BRL move to 3.20.”