25.09.201716:22:00UTC+00BRAZIL: Interest Rate Forecast For 2017 Kept Unchanged At 7%

Economists polled by the Brazilian central bank kept unchanged at 7% their estimates for the country's benchmark interest rate (Selic) by year-end. For 2018, estimates was also kept at 7%, after two downward revisions.

Average interest rate estimates for 2017 remained at 9.84%. For 2018, meanwhile, the forecast for the average interest was kept at 7% after eight consecutive weekly decreases.

Earlier this month, the Brazilian central bank's Monetary Policy Committee (Copom) cut the country's benchmark interest rate to 8.25%, from 9.25%, in line with market expectations, and signaled that it intends to keep loosening monetary policy in the next few meetings, but at a slower pace.

According to Copom, "for the next meeting, if the basic scenario evolves as expected, and because of the stage of the loosening cycle, the Committee sees as appropriate a moderate reduction in the magnitude of monetary easing."

For the October meeting of the Copom, market players point to a cut of 0.75 pp in the Selic, which means a reduction in the monetary easing cycle's rhythm, taking the rate to 7.50% per year.