• Categories
  • Archives

Brazil Experts Betting Key Interest Rate Will Fall 0.75% to 15.75%

Brazil’s annualized benchmark interest rate (SELIC), which currently stands at 16.50%, is expected to be lowered to 15.75% this Wednesday, April 19, at the meeting of the Central Bank’s (BC) Monetary Policy Committee (COPOM).

Anyway, that is what the hundred private sector economists surveyed last week by the BC expect, according to this week’s edition of the Focus Bulletin, which was published Monday, April 17.

They believe that, with inflation under control, the organ in charge of monetary policy will find it feasible to continue the process of reducing interest rates.

The economists are predicting gradual declines in the coming months, with the possibility of a 14% SELIC at year’s end. They are more cautious, however, about interest rate reductions next year, for which they are forecasting a drop of only 100 basis points (1%), to 13%.

The good news in this week’s Focus Bulletin has to do with a general uplift in the economists’ confidence level regarding the pickup in industrial activity.

Their forecasts for this year’s growth in industrial production have been trending upwards for the last five weeks. Their latest projection is 4.48%, compared with the previous week’s estimate of 4.33%. For 2007 they continue to expect industrial production to increase 4.50%.

This improvement, however, was not enough for them to alter their predictions for this year’s growth in the Gross Domestic Product (GDP), the sum of wealth produced in the country. For the last 50 weeks they have set this figure at 3.50%, and their estimate for next’s year’s increase in the GDP also remains unchanged, at 3.70%.

By the same token, their forecast for the ratio between net government debt and the GDP continues to be 50.50% for this year and 49% in 2007.

The survey also maintained the previous projections of US$ 40 billion for this year’s trade surplus (exports minus imports) and US$ 9 billion for the current account surplus, which includes all the country’s external commercial and financial transactions.

Moreover, the US dollar is still expected to end the year trading at no more than R$ 2.20 and not to exceed R$ 2.35 by the end of 2007.

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Your email address will not be published.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

Brazil Confident It Will Sell US$ 75 Million at Dubai’s Gulfood

Brazil’s Ministry of Agriculture, Livestock and Supply expects the business volume at the upcoming ...

Aquiraz, a Brazilian Beach Far Away from This Mad World

As a former resident of the state of Ceará, I have fond memories of ...

Brazil: Town Meeting to Discuss Forest Conservation

Today, indians, farmers, government authorities, businessmen and representatives of civil society will begin a ...

Music

Adding strong lyrics to catchy reggae sounds and mixing them with lively Brazilian rhythms, ...

Brazil Police Vow to Punish Officer Who Destroyed TV Reporter Equipment

In Brazil, after a month-long investigative effort, the Bahia State Military Police have confirmed ...

Goddesses

It would be quite impossible to list all the great divas or up-and-coming divas ...

Brazil Getting from France Nuclear Submarine and Its Techonology

2021 is the year Brazil expects to have its first nuclear powered submarine. The ...

Arab Bank ABC Trades Shares at Brazil’s Stock Exchange

ABC Brazil bank, the Brazilian branch of the Arab Banking Corporation (ABC), which is ...

Brazil’s US$ 2 Billion Nigerian Investment Starts to Bear Oil

Brazil's state-controlled oil multinational Petrobras started production of oil in Agbami field, in Nigeria. ...

Plenty of Dollar and Hefty Surplus Make Brazil Hum Along

According to Brazilian Minister of Finance, Guido Mantega, Brazil has been able to weather ...