Brazil Market Upbeat Despite High Interests

    The decision to increase the government’s annualized benchmark interest rate (Selic) by 0.50% at the last meeting of the Monetary Policy Committee (Copom) led financial institutions and market analysts to raise their expectations regarding year-end prospects.

    Their previous forecast of 17% for the year-end Selic was readjusted to 17.50%.


    This month’s Copom meeting, therefore, is expected to elevate the Selic from its current level of 16.75% to 17.25%.


    If no major short-term alterations occur, the market projects a Selic of 15.50% for next year.


    The estimates reported in last week’s survey also received upward corrections for the trade surplus (from US$ 32.63 billion to US$ 32.95 billion) and the rate of growth in industrial production (from 7.20% to 7.30%).


    The other indicators remained unchanged. The exchange rate is still expected to end the year with the dollar quoted at R$ 2.95, and the growth of the Gross Domestic Product (GDP) this year is still expected to be 4.56%.


    The market also maintained its forecasts of a US$ 10 billion surplus in foreign current transactions, US$ 15 billion in foreign direct investments, and a 55% ratio between net government debt and the GDP.


    Agência Brasil
    Translator: David Silberstein

    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    Your email address will not be published.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

    Soy in Brazil

    Brazil Repeats Record Performance in Soy Production

    Brazil's favorable weather and the priority ascribed by farmers to planting soybean in the ...

    Brazil’s Zero Hunger International Gets Wide Backing

    Brazil’s special presidential advisor and coordinator of the Zero Hunger Program, Brother Betto, affirmed ...

    Lula talks to Dilma

    Lula Can Campaign for His Pick for President But Only After Working Hours

    The president of  Brazil, Luiz Inácio Lula da Silva, was authorized to participate in ...

    Europe and Latin America in Brazil Discussing Information

    Today and tomorrow, November 22 and 23, Rio de Janeiro, Brazil, is hosting the ...

    Samba Dreamers cover

    A Phony American Dream and a Too-Real Brazilian Nightmare

    The Brazil of the imagination is shattered in Samba Dreamers, a novel of two ...

    Looking from Israel

    Brazil Wants Immediate Cease Fire in Gaza and Accuses Israel of Using Excessive Force

    The Brazilian government talking on behalf of Mercosur condemned the “disproportionate use of force” ...

    Rapidinhas

    Secret revealed Hillary Rodham Clinton, passed every test during her recent trip to Brazil: ...

    Seven Brazilian Companies Show Their Wares at Algiers International Fair

    Brazilian company Randon, a maker of highway transport equipment, has established a partnership with ...

    Lula in Copenhagen

    Lula in Copenhagen Calls for Preservation of Kyoto and Commitment from US and EU

    During a speech at the 15th UN Conference on Climate Change (COP-15), Brazilian President ...