Fynsa
The data showed that inflation is far from being a problem.
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.
The "more positive" news on inflation has been well received and will revive trade based on a "policy pivot".
The downside surprise in July inflation in the US will help moderate inflation expectations, but the data remains too high to warrant an appropriate turnaround by the Fed.
The US yield curve has shown an increase in the implied probability of recession in recent weeks.
Concern about rising prices and the instruments to control them is not only a technical discussion, it is also a moral obligation.
The year-on-year variation would reach 12.7%, unfortunately for those who expect inflation to ease a little in the coming months.
We must put ourselves in the pants and skirts of the Central Bank Advisors and anticipate what is to come for the rate over the next few months.
