Good morning! This week, we look at discussions over Brazil’s inflation targets. Threats for Brazil’s House speaker. And why it is so important for the government to regain control over the country’s tax appeals court.
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A decisive week for monetary policy?
This week is full of events that could influence the government’s monetary policy going forward. On Tuesday, the Brazilian Institute of Geography and Statistics releases the mid-month inflation index for June, which serves as a beacon for how prices are behaving.
- The same day, the Central Bank will release the minutes of last week’s policy meeting, with markets waiting to see if the bank will reaffirm the hawkish but not-so-hawkish tone it used on Wednesday.
- But all eyes should be on Thursday’s events: the Central Bank releases its quarterly inflation report and the National Monetary Council holds a meeting that could see a change in the government’s inflation target, currently at 3.25 percent (with a tolerance margin of 1.5 points).
The council. The National Monetary Council is composed of Finance...