• Categories
  • Archives

Experts Expecting Lower Interest Rates in Brazil

According to the average expectation of market analysts, Brazil’s official annualized benchmark interest rate (Selic), which currently stands at 16.50%, should decline to 14.25% by December. Every Friday they respond to a Central Bank poll about trends in the main economic indicators.

Four weeks ago the economists forecast that interest rates would fall to 14.50%, but, in view of three consecutive decisions by the Monetary Policy Committee (COPOM) to lower the rate by 0.75 percentage points, their optimism has been whetted for a bigger decrease. Already last week their forecast had dropped to 14.38%.

The results of the survey published Monday, March 27, in the Focus Bulletin show that the analysts continue to expect that the US dollar will be worth 2.20 reais at the end of this year. Their prediction for the exchange rate at the end of 2007 is 2.38 reais, down from the 2.40 reais that appeared in last week’s survey.

As far as the economists see it, the market continues to maintain its course, without important variations. Except for a slight improvement in their forecast for the growth in industrial production, up from 4.11% to 4.21%.

Even so, this has not altered their estimate of this year’s growth in the Gross Domestic Product (GDP), the total wealth produced in the country, which has remained at 3.50% for 47 weeks. For next year, however, they lowered their estimate from 3.70% to 3.65%.

All the other indices for this year remain the same. The trade balance (exports minus imports) should end the year at around US$ 40 billion, and the current account balance, which includes all foreign commercial and financial transactions, should end up at US$ 9 billion. The inflow of foreign direct investments should total US$ 15 billion.

Agência Brasil

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Santo André Gets Crown as Brazil’s Most Flirtatious Town

Santo André, in the Greater São Paulo, was named “Brazil’s flirtiest city” by the ...

Law and Reprisals Make Brazil’s Freedom of Press Ranking Low

Brazil ranks 63 in the Reporters Without Borders fourth annual World Press Freedom Index. ...

Brazilian Exports Reach US$ 111 Billion With US$ 30 Billion Surplus

Brazilian foreign sales totaled US$ 3.121 billion last week, a slight reduction when compared ...

Brazil Selling Itself to China as Best Place for Investment

Seeking investments in ports and roads from China, its largest market for agricultural products, ...

Lula and Kirchner Patch Their Differences in Brazil

Presidents from Argentina, Brazil and Venezuela made a commitment to push forward with South ...

Brazil and EU Closer to Integration

During his visit to Kenya, the Brazilian Minister of Foreign Relations, Celso Amorim, met ...

Without Arraes, Brazil’s Left Is Completely Orphaned

Without Leonel Brizola, without Luis Carlos Prestes, without Darcy Ribeiro, without Celso Furtado, without ...

Down for the Count

Ciro Gomes has still not made a sincere apology for his asinine remark that ...

Ecology Expert Pans Brazil for Building More Hydroelectrics

Washington Novaes, a Brazilian journalist who writes on environmental issues and has been a ...

Instead of Waiting to Grow to Share Brazil Is Sharing to Grow, Says Lula

Conventional wisdom has it that you grow in order to distribute income. According to ...