For the second consecutive week, on the eve of the Central Bank’s (BC) Monetary Policy Committee (Copom) meeting, the financial market raised the estimate for the basic interest rate, Selic. Analysts’ forecast for interest rates by the end of 2026 went from 13.5% per year to 13.75% per year.
The information is in this Monday’s Focus bulletin, a survey released weekly by the BC with the expectations of financial institutions for the main economic indicators. Inflation expectations rose for the 14th consecutive week to 5.3%.
For 2027 and 2028, the projection is that the Selic will be reduced to 12% per year and 10.25% per year, respectively. In 2029, the rate should reach 10% per year. Copom is holding a new meeting this week to decide on the Selic, and the financial market’s forecast is that it will be maintained at 14.5% per year.