Brazil economists trim forecast for rate hikes | Fin24
 
  • Load Shedding

    Find the latest load shedding schedules for Joburg, Durban, Cape Town, and other cities.

  • Peter Moyo

    The former Old Mutual CEO says he wants its directors jailed for six months without option of a fine.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Brazil economists trim forecast for rate hikes

Aug 01 2016 16:45
David Biller

Rio de Janeiro - Brazil economists forecast the central bank will be less aggressive when cutting interest rates this year as inflation remains sticky and a new board signalled resistance to looser policy.

Economists’ median forecast for the benchmark rate at year-end rose to 13.5% from 13.25% the prior week, marking the first increase in the central bank’s weekly Focus survey since June.

The Selic currently stands at 14.25%, its highest level in nearly 10 years.

Brazil’s inflation in the month through mid-July caught most economists off guard, accelerating by more than all but one of their estimates. Headline IPCA inflation is still running at nearly double the 4.5% target, and economists surveyed by the central bank only see it slowing to 7.21% by year-end.

The central bank’s monetary policy committee has held the Selic at its current level for eight straight meetings, even after Ilan Goldfajn took over as the bank’s president and Acting President Michel Temer said he hoped the monetary authority would lower borrowing costs. Most recently, board members voted unanimously after their July 19 to 20 meeting to keep the Selic unchanged.

"All board members acknowledged progress in the disinflation outlook for the Brazilian economy, but expressed concern about inflation expectations," policy makers said in minutes of their first meeting under Goldfajn.

Read Fin24's top stories trending on Twitter: Fin24’s top stories

brazil  |  economy
NEXT ON FIN24X

 
 
 
 

Company Snapshot

#MINIBUDGET2019

Struggling power utility Eskom will take centre stage at this year's mini budget
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote

Loading...