Sophie Bosch de Hood said the latest round of municipal elections showed dominance by centre-right Brazilian Social Democracy Party (PSDB) party, at the expense of the Worker’s Party (PT) - that of ousted president Dilma Rousseff.
She added that the new government saw its Congress preparing to vote on a constitutional amendment that would cap public expenditure.
With forecasts of declining inflation, she said the Brazilian central bank looks ready for an easing cycle.
“August economic activity data came on the weak side, but confidence indexes kept improving, which suggests that the recovery will continue towards year-end and 2017,” the manager said.
However, while voicing concerns over Brazil’s levels of unemployment, its currency looked in better shape.
Bosch de Hood added: “The unemployment rate, however, continues to rise as the labour market lags economic activity. The Brazilian real has been relatively stable in recent weeks, while the Brazilian Central Bank continued its interventions in the currency market.”