Brazil: Economy still vulnerable - ABN AMRO

ABN AMRO says Brazil faces external and domestic headwinds but is less vulnerable than Turkey because it has a smaller current account deficit and stronger foreign direct investment inflows. The bank flags the fiscal deficit, which has run above 5% of GDP since 2015, as the weakest point.

It expects the central bank to hold rates for the rest of 2018 and resume tightening in 2019.