Brasília – The financial market sees the Brazilian benchmark interest rate (known as Selic) being reduced by 0.25 percentual point this week. Now, Selic is at 6.5% per annum. On Tuesday (3) and Wednesday, the Central Bank of Brazil’s (BC) Monetary Policy Committee (Copom) will meet for the fifth time this year to decide the rate.
As per BC’s Focus survey released this Monday (29), the reduction expected for this week will likely be followed by other 0.25 percentual point cuts in the next Copom’s meetings this year: in September, October and December.
The market expectation is that Selic ends 2019 at 5.5% per annum. By the end of 2020, the forecast was changed from 5.75% to 5.5% per annum. By the end of 2021 and 2022, it remains at 7% per annum.
Translated by Guilherme Miranda
