Brazil's Inflation Slows in October

• Brazil's inflation slowed more than expected in October, following a rebound in September, data from the statistics agency IBGE showed on Tuesday, fueling expectations of an interest rate cut early next year.
• Consumer prices in Latin America's largest economy rose 0.09% in October, down from a 0.48% increase the previous month, as residential electricity prices fell, IBGE said. Economists in a Reuters poll expected a 0.16% expansion.
• In the minutes of its latest monetary policy decision released earlier on Tuesday, the central bank said that the recent economic developments have reinforced its view that the current 15% rate is adequate to bring inflation back to target. "The minutes to last week's meeting, while less hawkish than those from the preceding meeting, gave no sign that a cut is imminent," Capital Economics' analysts added.
• Daycoval analysts said that the October data does not alter their expectation that interest rates will remain unchanged through the end of the year.

(Source: Reuters)