Banks see a decline of interest rates
The financial market believes the Selic, the benchmark interest rate, will drop tp 8.75% until the end of the year. Currently, it sits at 12.25%.
Brasília – The financial market believes the Selic, the benchmark interest rate, will be at 8.75% at the end of 2017. Last week’s forecast called for interest rates of 9% per year, according to the Focus Bulletin, made available every Monday by the Brazilian Central Bank (BC). Currently, the Selic is at 12.25% per year. On March 30, BC signaled that it could speed up the cuts in interest rates.
The forecast on inflation by the financial market came down for the fourth consecutive time. This time, the estimate for the Extended National Consumer Price Index (IPCA) went from 4.12% to 4.10% in 2017. For 2018, the forecast remains at 4.5%.
Financial institutions’ forecast for the economy’s growth this year remains at 0.47%. For next year, the forecast calls for 2.5% growth.
*Translated by Sérgio Kakitani