Economists polled by the Brazilian central bank kept their estimates for the country’s benchmark interest rate (Selic) at 6.75% at the end of 2018 for the seventh consecutive week. The forecast for the average rate in 2018 remained at 6.75% for the eighth week in a row.
For 2019, estimates remained at 8.00% for the fourth week, while the forecast for the average rate next year decreased to 7.88% from 7.89% last week.
Last week, 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 its next meeting, scheduled for March.