Brasília – Analysts of the financial market raised their estimation for the Selic, the benchmark interest rate of the economy, at the end of this year. From the 13% projection that was maintained for weeks, the estimation went up to 13.25% per year at the end of 2015. There’s also an expectation for the economic activity to go through a stronger downturn that previously estimated. Investors changed their projection for the Goss Domestic Product (GDP, the sum of goods and services produced in the country) from a 0.78% to a 1% decline.
The forecasts were presented by the Focus bulletin, the survey with financial institutions released weekly by the Brazilian Central Bank (BC). The change in the Selic estimation means that the market expects that the Monetary Policy Committee (Copom) of BC to raise the rate in 0.5 percentage point this year. In 2015, Copom already raised the Selic in 1 percentage point, with two 0.5 percentage point raises in the January and March meetings. The committee gathers once more on April 28th and 29th.
*Translated by Sérgio Kakitani
