Turim’s Insights

The discovery of Ômicron – a new variant of Coronavirus –, bottlenecks in supply chains and pressured global inflation were the main factors that impacted markets in November. They were discussed in today’s webinar.

On the international scene, the very heated US labor market made the Federal Reserve (Fed, the US central bank) set aside the idea that higher inflation would be transitory.

“Now, quite possibly the monetary authority should speed up the process of reducing its purchase program – and this movement indicates they might raise interest rates ahead of schedule”, explains our chief strategist Nelson Abrahao.

In Brazil, the weaker third quarter GDP result has disappointed and leaves the central bank in a dilemma. “Although the economy is slowing down, inflation is still under pressure. Therefore, the market is now questioning what the Selic rate will be at the end of this high cycle”, concludes Abrahao.