FX.co ★ Ibovespa Rebounds Amid Measured Tightening Outlook

The Ibovespa index increased by 0.3%, surpassing 131,600 on Tuesday, as investors reassessed their positions following insights from the latest Copom meeting minutes and a rise in consumer confidence. The minutes pointed out the increased difficulty in aligning inflation with expectations that remain unanchored. This suggests that while further monetary tightening is anticipated—with a 0.50 percentage point interest rate hike in May and a subsequent 0.25 point increase in June—the upcoming adjustments will be more restrained due to ongoing uncertainties and the delayed impacts of previous policies. This strategic approach aims to ensure effective monetary policy transmission without hindering economic growth. Concurrently, Brazil's Consumer Confidence Index showed improvement, rising by 0.7 points to 84.3 in March 2025, thus ending a three-month downtrend that had seen it fall to its lowest level in over two years. Leading the stock market gains were Companhia Sanea, Itaúsa, and Banco Bradesco, each recording an increase of over 1%.