Here is a snapshot of the Brazilian bank’s forecast on rate-cuts, according to their “Latam Macro Monthly” newsletter:

“We expect the Central Bank to accelerate cuts to 75 bps, landing the Selic at 9% in 2012 and keeping 2012 GDP growth unchanged. We have reduced our 2011 GDP forecast to 3.2%. However, we kept our 2012 forecast at 3.7%, reflecting expectations for quicker rate cuts by the central bank. Our 2012 inflation forecast edged up, owing to a deterioration of inflation expectations. We expect the currency to stay weaker in the short term, but closing 2011 at BRL 1.80 to the dollar and BRL 1.75 by the end of 2012.”

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