Brasília – The financial market estimates that the Selic, the benchmark interest rates, will go down to a single digit and end 2017 at 9.75% per year. The forecast is part of the Focus Bulletin of this Monday (16), the weekly survey conducted by the Brazilian Central Bank (BC) with financial institutions. Last week, the institutions surveyed forecasted the Selic to end the year at 10.25%. Currently, it stands at 13% per year.
Financial institutions revised down to 4.8% their estimate for the inflation rate at the end of the year, as measured by the Extended National Consumer Price Index (IPCA), against last week’s forecast of 4.81%. The market kept its forecast that the inflation will stay within the center of the target of 4.5% in 2018.
The forecast by financial institutions for GDP growth this year remains at 0.5%.
*Translated by Sérgio Kakitani