Brazil’s benchmark SELIC interest rate to reach 7% in 2021, says Bank of America

For 2022, BofA estimates the rate would remain at 7%.

RIO DE JANEIRO, BRAZIL - The Selic may rise to 7% in 2021, Bank of America (BofA) estimates in a report sent to clients on Tuesday, June 22. David Beker and Ana Madeira, signers of the document, believe that the Central Bank will increase the pace of macroeconomic adjustment.

Copom could raise interest rates twice by 100 basis points in August and September, followed by a 50 basis point increase in October and a final 25 basis point increase in December, with the Selic reaching 7%.

For 2022, BofA estimates the rate would remain at 7%.

According to Beker and Madeira . . .

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