Brasília – After the Monetary Policy Committee (Copom) of the Brazilian Central Bank (BC) raised the Selic in 0.5 percentage point last week, analysts and investors increased their estimation for the benchmark interest rates for the year. According to these estimations, the Selic, currently at 13.25%, should reach 13.5% per year at the end of 2015. For 2016, the projection of the benchmark interest rates went from 11.5% to 12% per year.
The estimations are from the Focus bulletin, a survey done by financial institutions that’s published weekly by the Central Bank. Copom will meet again to discuss the Selic on June 2nd and 3th. Concerning the inflation, which is measured by the Extended National Consumer Price Index (IPCA), the market raised their estimation from 8.25% to 8.26%. The estimation of administered prices, such as gas and energy, went from 13.1% to 13.05%.
The Focus bulletin also forecasts a retraction of economic activity in the country. Analysts increased their projection of decline of the Gross Domestic Product (the sum of all goods and services produced in the country) from -1.10% to -1.18%. The estimation for the exchange rate remained at R$ 3.20.
*Translated by Sérgio Kakitani
