November 29, 2022
Focus point: With inflation expected to exceed 7% in 2021, financial market expects Selic to reach 7.50% in December

Focus point: With inflation expected to exceed 7% in 2021, financial market expects Selic to reach 7.50% in December

(Fokusiert/Getty Images)

São Paulo – With the rising expectations of Brazilian inflation, the financial market also continues to adjust upward expectations for the base interest rate.

The central bank’s Focus report on Monday (16) shows that for the second week, the financial market increased its slick rate expectations at the end of this year, this time from 7.25% to 7.50%. With the adjustment, the estimate for interest rates in December 2022 was also raised, from 7.25% to 7.50%, indicating interest rate stability over the next year.

After increasing one percentage point in Selic in The last meeting of the Monetary Policy Committee (COBOM)To 5.25% in August, a new increase of the same size is expected in September, with interest rates raised to 6.25% annually. For the October meeting, the forecast in the focus point is 7.00% – both estimates unchanged from the previous survey.

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