BCB Deputy Governor says total easing will be determined in light of new data

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BCB deputy governor said 'the overall size of easing will be determined by new data.' This means the central bank is leaving the door open to rate cuts while deciding the pace and scale of easing step-by-step based on real-economy data such as inflation and growth indicators. Markets are pricing in easing expectations, factoring in possible declines in bond yields, strength in cyclical stocks, and BRL weakness. However, the data-dependent stance maintains policy uncertainty, which is likely to increase near-term volatility and widen sectoral differentiation.

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