Analysts see Selic at 2% by end of 2020

Uncertainties over the future of the Brazilian economy will likely force the Central Bank’s Monetary Policy Committee (Copom) to keep Selic policy interest rate unchanged next week. This assessment is unanimous among the 76 financial firms heard by Valor, which also expect the Selic to be maintained at the December meeting, the last one in 2020. The projections for next year are dispersed, but there is a consensus, shared with the Central Bank itself, that the rates’ trajectory depends on the fiscal situation. For 2021, BTG Pactual foresees interest at 3%, Banco Inter at 3.5%, Credit Suisse at 4% and Pezco at 4.75%. Persevera bets on new cuts.

Source: Valor International