2017.06.2614:58:00UTC+00BRAZIL: Economists Keep Interest Rate Forecasts Unchanged For 11th Week

Economists polled by the Brazilian central bank kept unchanged at 8.50% for the eleventh week in a row their estimates for the country's benchmark interest rate by year-end. Meanwhile, average interest rate estimates for 2017 remained at 10.28% for the fourth week.

For 2018, the forecast was unchanged at 8.50% per year for the 14th week in a row. Average interest rate expected next year also remained at 8.50% for the seventh consecutive week. Selic estimates remained stable even after the Brazilian central bank decided last month to cut its main interest rate by one percentage point, to 10.25% per year - the lowest level since January 2014, when it was at 10%.

The Brazilian central bank monetary policy committee (Copom) said at that time that it is bound to slow down the pace of interest rate cuts at its next meeting, in July, to adjust to possible delays in economic reform bills approval in Congress.

However, a few days after that monetary policy decision, the national statistics office said that the 12-month inflation rate for May slowed down to 3.6% - the lowest level in ten years and almost a full percentage point below the 4.5% target -, raising hopes that the central bank will keep the current rhythm of rate cuts.