RIO DE JANEIRO, BRAZIL - With a "much less benign than the Central Bank's" inflation scenario and after the COPOM's more incisive wording with respect to anchoring inflation expectations, Credit Suisse raised its projection for the SELIC at the end of the year from 7.25% to 8.25%.
"We expect the monetary authority to maintain this tightening pace of 100 basis points per meeting until the end of the year, raising the SELIC to 8.25%. As we see it, the risks for inflation and the interest rate continue on an upward trend," point out economists Solange Srour . . .