Market projects greater growth for Brazil this year and higher SELIC in 2022

RIO DE JANEIRO, BRAZIL – The market is now expecting stronger economic growth this year and a higher basic interest rate in 2022, according to the Focus survey released by the Central Bank on Monday.

The weekly survey showed that the expectation now for Gross Domestic Product expansion in 2021 stands at 3.14%, 0.05 percentage points higher than the preceding week.

On the other hand, economic growth projection for 2022 fell 0.03 points, to 2.31%.

The basic interest rate scenario for the SELIC at the end of this year remained at 5.50%, but for 2022 it rose to 6.25%, from 6.13% in previous median projections.

Inflation projections also rose slightly in the survey among 100 economists, to 5.04% and 3.61% in 2021 and 2022 respectively, from 5.01% and 3.60% previously, both above the target center.

The official inflation target center for 2021 is 3.75% and for 2022 it is 3.50%, both with a 1.5 percentage point tolerance margin, up or down.

Source: Moneytimes

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