In August, the market's mainstream core expectation is that the Brazilian central bank will cut interest rates by 25 basis points.


The probability of a 25bp rate cut is 63%, with odds of only 1.59x; the blue curve has been at a high level overall for a long time. Although there was a significant pullback in mid-June, it quickly rebounded to high levels again near June 29, with over half of the funds betting on the start of rate cut easing in August.
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ProofOfSnack
· 52m ago
1.59x odds are a bit low, but that rebound on the blue curve at the end of June was really strong. Funds are all betting on easing; it feels like it'll keep fluctuating before the shoe drops.
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