Bank of America has trimmed its Brazil bet and shifted toward Chile and Colombia, after a worse rate outlook removed a key support for Brazilian assets.
Brazil · Markets
Key Facts
—The shift. Bank of America has reduced its positioning on Brazil and raised exposure to Chile and Colombia in its regional strategy.
—The trigger. BofA now sees Brazil’s benchmark Selic rate at 14.25% by the end of 2026, implying just one more cut in June and then a long pause.
—A reversal. The move marks a turn from earlier this year, when the bank had named Brazil its top regional pick.
Brazil central bank cuts key interest rate by 25 basis points for third straight meeting
Fitch rebaixa perspectiva para o setor bancário brasileiro para ‘em deterioração’
Correction to Brazil Central Bank Article
Brazil's Central Bank Keeps Cutting Despite Hot Prices — Update
Fitch cut its outlook on Brazil banks to "deteriorating" from "neutral," citing weaker asset quality and political risk,…
Equipe do banco, liderada por David Beker, aponta ainda que a volatilidade com a corrida eleitoral tende a aumentar no decorrer…
Brazil · Banking Key Facts —Market loss: Brazil's four largest banks shed approximately R$80 billion (about $16 billion) in…
Morgan Stanley has laid out its view for Latin American currencies in the rest of 2026. The bank sees a mixed picture rather than…
A string of bank downgrades has knocked Nubank stock down about a third this year, as a tougher Brazilian credit cycle tests the…
A stronger-than-expected start to the year has earned Latin America's largest economy a growth upgrade for 2026 — but Fitch warns…
