Kelly Oliveira       Reporter Agência Brasil

Brasília – The Central Bank’s weekly survey of financial institutions and market analysts, known as the Focus report, found that estimates for the country’s benchmark interest rate, the Selic (now at 10.5% per year), were for the Monetary Policy Committee (“Copom”) to lower it to 9.5% by the end of this year. However, the market sees it rising to 10.5% at the end of 2013.

It should be pointed out that Copom is meeting today and that expectations are definitely for a reduction – the question is how much. It is possible that the Selic will drop to 9.5% much sooner than expected.

 With regard to inflation this year, as measured by the Broad Consumer Price Index (“IPCA”), the government’s official inflation yardstick, market estimates fell slightly from 5.29% to 5.24%. The official inflation target is 4.5%, plus or minus two percentage points.

However, the market raised its inflation projection for 2013 slightly from 5% to 5.02%.

Allen Bennett – translator/editor The News in English

Link - Analistas do mercado financeiro reduzem projeção do IPCA de 5,29% para 5,24%