Copom Seen Cutting 50bp

Goldman Sachs, in agreement with market consensus, forecasts that Brazil’s central bank, Copom, will cut the monetary policy rate by 50bp to 8.75% today and believes the decision will be unanimous. However, it expects a brief statement by Copom to leave the door open for a 25bp easing in September. Bulltick Capital agrees with the 50bp reduction, and with one more 25bp cut before the end of the year, leaving the rate at 8.5%. JPMorgan also forecasts a 50bp cut this month, but different from the other shops, believes this will be the last easing of the year.