Brasília – Financial institutions consulted by the Brazilian Central Bank don’t expect a raise in the benchmark basic interest rate SELIC for this year. The forecast for the end-of-2019 rate fell from 7% to 6.5% per year, the current level.
For 2020, however, the financial market expects a raise in SELIC, with an 8% ending rate per year. These projections are in the Focus Readout, weekly survey by the Central Bank with financial institutions about the main economic indicators.
For the financial market, the inflation should remain at 3.94% this year. Last week, the estimate was 4%. For 2020, the forecast is that IPCA remains within the target, at 4%. The forecast for Gross Domestic Product (GDP) remained at 2.50% in 2019 and 2020, and for the dollar exchange rate went from BRL 3.75 to BRL 3.70 for the end of this year, and from BRL 3.78 to BRL 3.75 by the end of 2020.
Translated by Guilherme Miranda
