Gustavo Franco had a good relationship with international banks and this change is very traumatic. Everything now is going to be related to Fernando Henrique (Cardoso)'s stance and that of Congress. |
I still think it will be 0.75 in January, but the minutes pointed more toward 0.50 again. |
So far, his views about the long term seem rather nebulous. |
The inflation scenario is positive all around, and I don't see any signs of it worsening in the near term. I'm already betting on a small rate cut in September, probably by 0.25 (percentage points), and more after that. |
This is positive. The tax structure that exists today in Brazil, even for local investors, is an aberration. |