Fynsa
The beginning of the monetary easing cycle will accelerate the transition of portfolios from IIF to IRF. Levels and accruals enhance the value of the short end of the interest rate curve, but UF instruments gain attractiveness, especially between 2 and 5 years.
There are still opportunities, but the focus should remain on the search for investment grade opportunities in the region, to the detriment of high yield.
The sector continues to expand, although adjustments in occupancy and rental rates are observed.
During the first half of the year, we have seen a recovery in this asset, with historically low vacancy rates and an increase in rental prices.
The probability that the process of convergence to inflation will be interrupted or definitely turned around has fallen significantly, but there are still elements of risk to monitor.
Speeches and communications from the Central Bank Board have only been along one line: it is still too early, risks are high and policy error can be very costly.
The Central Bank will remain steadfast in its goal of propping up inflation towards its two-year target of 3%, and until that happens, it will not begin to reduce the monetary policy rate.
The main question the market is asking after the January CPI is whether this surprise puts the decline in inflation at risk.
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.
