Brasília – Working under the estimation that the inflation rate will go beyond the target this year, the Brazilian Central Bank (BC) said this Thursday (31) that it’s not considering a reduction of the Selic, the benchmark interest rates.
The information is part of the BC’s Inflation Report, released every quarter and that calls for an inflation rate of 6.6% in 2016. This is the first time that the BC estimates the inflation rate going above the target this year. The target center is 4.5% and the upper threshold is 6.5%.
According to the BC, the estimated probability of the inflation going over the upper threshold of the target is 55% in 2016 and 22% in 2017. For the market, this probability is of 65% in 2016 and of 33% next year.
*Translated by Sérgio Kakitani
