Brazilian and Polish central banks meet eyed – BBH

By FXStreet FXStreet (Delhi) – Research Analysts at BBH, expects that the Brazilian and Polish central bank are likely to maintain status quo when they meet later today.

Key Quotes

“Polish central bank meets and is expected to keep rates steady at 1.5%. Policy has been steady since the last 50 bp cut in March, and the bank has said rates would remain low for some time.”

“We think mid-2016 is likely for the start of the tightening cycle. The economic recovery remains robust, but inflation pressures remain low for now and should allow the bank to stand pat for the time being.”

“Brazil reports July IP, expected at -6.2% y/y vs. -3.2% in June. COPOM also meets and is expected to keep rates steady at 14.25%. A very small minority looks for a 25 bp hike. The last move was a 50 bp hike in July, and it has hiked at every meeting since last October.”

“With inflation and inflation expectations still rising and the real still falling, we think there is a chance of a hawkish surprise today. The fiscal outlook continues to darken, and we think the case for Brazil losing its investment grade rating …read more

Source:: FX Street