12 May 2023

⏬ Time to consider a shift for the Central Bank of Brazil?

🇧🇷 Brazil's Consumer Price Index (CPI) is nearing the end of its normalization process, hitting a low of 4.18% in April, the lowest level since October 2020! 📊 The Banco Central do Brasil (Central Bank of Brazil) took proactive steps by raising its key rates (Selic rate) early on to address inflationary pressures. Their actions have yielded positive results, bringing inflation back in line with Brazil's historical patterns. ⚖️ The potential for rate cuts is now significant, particularly if Lula appoints his preferred candidates, like Gabriel Galípolo, to influential positions within the Brazilian central bank. President Campos Neto is widely respected as one of Latin America's top central bankers. However, his focus on controlling inflation rather than stimulating Brazilian growth, coupled with his association with former President Bolsonaro, may put his position at risk. 🛑 Is Brazil on a similar trajectory as Turkey, where concerns arise over the central bank's alignment with the government? Source: Bloomberg


This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document.

Read More

Straight from the Desk

Syz the moment

Live feeds, charts, breaking stories, all day long.

Thinking out loud

Sign up for our weekly email highlighting the most popular posts.

Follow us

Thinking out loud

Investing with intelligence

Our latest research, commentary and market outlooks