Economists polled by the Brazilian central bank trimmed their estimates for the country’s benchmark interest rate (Selic) to 6.50% at the end of 2018, after ten weeks at 6.75%. Meanwhile, the forecast for the average rate in 2018 was cut to 6.53%, after eleven weeks at 6.75%.
For 2019, however, estimates remained at 8.00% for the eighth week, while the forecast for the average rate next year remained at 7.75%.
Last month, the Brazilian central bank’s Monetary Policy Committee (Copom) cut the country’s benchmark interest rate to 6.75% – a record low – from 7.00%, in line with market expectations.
The Brazilian Central Bank also indicated that it might interrupt the current easing cycle in this month’s meeting, but market players now expect a 25 basis points cut.