The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Brazil's relentless series of interest rates hikes is successfully lowering inflation expectations - despite recent signs to the contrary, from lottery to tomato prices.
Brazil's monthly inflation rate eased below 1 percent for the first time this year in April and inflation expectations for 2016 have dropped for the first time in two and a half months.
Expectations may have been pushed to later this year for when the U.S. Federal Reserve will hike interest rates, but a repeat of another steep sell-off in emerging market stocks appears unlikely as much has already been priced in - and because of the stronger dollar.