Brazil cut its Selic policy rate 25 basis points to 13.75%, the fifth straight cut, hours after a wholesale price gauge unexpectedly jumped 1.47% in September. That undercuts its own disinflation case, right as the Fed hikes the same evening.
GRechMacro flags Copom as the counter-cyclical leg of Super Wednesday, with B3 options still implying a near-certain 25 bp cut even as the Fed is priced to tighten and shrink Brazil’s rate differential. Source
