Copom to Shave Selic by 100bp

Goldman Sachs and Merrill Lynch see the Brazilian central bank shaving the Selic by 100bp in the March 11 meeting, bringing the rate to 11.75%. However, Goldman says it does not rule out the possibility of the bank making a cut of only 75bp, as the outlook for economic activity in Brazil has improved since January. By mid-year, Goldman and Morgan Stanley see the Selic shrinking to 9.75%, and Merrill says it should drop to 10.25%.