Fynsa
Financial concerns have subsided, but there are new fronts in the political and corporate governance arenas.
Adjustment will continue and a reduction in domestic demand is a necessary condition to reduce inflation and bring the current account deficit to more sustainable levels.
The Central Bank decided to keep the rate at 11.25. The question now is when there will be news on this front.
Higher interest rates put pressure on valuations during 2022, but the focus will now shift from valuations to corporate earnings in an increasingly challenging macro environment.
As usual, I wanted to summarize our main projections for 2023, at the risk of being overcharged in twelve months' time.
The system is also emerging as an opportunity for Fintechs, which, in addition to being able to participate in the system, can create specific applications to promote its use.
The risk of reducing the MPR and then having to reverse it due to a misreading of the information is much higher than leaving it at 11.25% for longer than appropriate.
It is important to mention that we do not believe that inflation is over and that the risks of persistence and slower normalization are still present.
We continue to believe that September would have been only the first of many months that will show negative variation
The important question that arises with respect to the Central Bank's policy is how long monetary tightening will be on hold.
