Turim’s Insights

The highest US inflation rates in 40 years, repeated interest rate hikes by the Federal Reserve (Fed, the US central bank), an energy crisis fueled by Russia’s invasion of Ukraine and Brazil’s elections were some of the main issues discussed on our monthly webinar.

In Europe, many countries are suffering from rising energy prices. According to our partner and strategist Nelson Abrahão, since September of last year, different fiscal relief measures are being adopted to smooth the pass-through of higher costs to consumers and companies.

“The most recent measures announced by Germany are smart in the sense that they allow some adjustment by the market, even if marginally, from a certain level of basic energy consumption”, he explains.

In the domestic scenario, Nelson highlights the behavior of the Central Bank of Brazil as one of the first to initiate the movement to mark the end of the cycle of high interest rates.

“After the temporary effects related to the drop in fuel prices and tax cuts – which have caused inflation to surprise downwards – the Monetary Policy Committee expects to see inflation converging close to the target in 2024”, he evaluates.

The webinar also featured our co-CEO Eduardo Gomes de Almeida, João Felipe Bandeira de Mello, fund analyst, and Henrique Santos, CFA, portfolio manager at Turim.