Brazil Expected to Hike Rate

Brazil’s central bank is expected to hike its rate by either 25bp or 50bp today from 11.75%. “We believe recent developments in the fundamental drivers of inflation do not yet allow a slowdown in the tightening of monetary policy,” Nomura says, adding that inflation readings came in higher than expected in March at 0.79%. JPMorgan meanwhile, believes the bank will only tighten by 25bp. “We expect the bank to choose a gradualist approach,” it says.