Market forecasts more interest rate cuts and GDP growth in 2018

Market forecasts more interest rate cuts and GDP growth in 2018

Chamber Articles Category: Economic News Post Date: 01/02/18 Source: BrazilGovNews By: BrazilGovNews
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The financial market is increasingly optimistic with the scenario for 2018. Projections surveyed by the Central Bank show that leading economics experts have improved their forecasts for inflation, interest rates and growth in the country.

In practice, this means that they expect a much better year than 2017, with more job creation and wealth, more access to credit and better quality of life for the population.

The data is part of the Focus Bulletin, a weekly publication of the results of a weekly survey conducted by the Central Bank of about 100 expert market analysts and their projections for the country's main indicators. The results are released every Monday.

Interest Rates

According to the survey, there may be more room for falling interest rates in the country. Experts predict that the Selic rate is likely to receive further cuts next year and drop to 6.75% p.a.. Currently, the rate is at 7%.

Expectations for the Gross Domestic Product (GDP) have also improved. A week earlier, the forecast was that the country would grow 2.64% next year; now, that number has risen to 2.68%. Read Full Article