This is the first time a rate cut has been mentioned since rates rose in 2013.

http://www.bloomberg.com/news/articles/2016-04-04/brazil-analysts-forecast-rate-cut-for-first-time-since-november

Here’s Banco Itau’s own presentation and they expects rates to fall to 10.5% next year from 14.25%

https://www.itau.com.br/_arquivosestaticos/RI/pdf/en/ITUB_Institutional_Presentation_4Q15.pdf

Last time Rates were at 10.5% was early 2014, and EWZ was around 40-43, and BRF  27-29, huge upside from here ( 25.3 and 11.93 respectively)!!!

Depending on US stocks and global risk appetite, it could go even higher than that in 2017. Knock on wood.

brazil-interest-rate

It’s all good for EWZ/BRF.

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