Brazilian Central Bank expects inflation above the targetStaff writer ▼ | April 1, 2016
Under the estimation that the inflation rate will go beyond the target this year, the Brazilian Central Bank (BC) said it’s not considering a reduction of the Selic, the benchmark interest rates.
LatAm The Brazilian bank will not touch rates
The information is part of the BC’s Inflation Report, released every quarter and that calls for an inflation rate of 6.6% in 2016.
This is the first time that the BC estimates the inflation rate going above the target this year. The target center is 4.5% and the upper threshold is 6.5%.
According to the BC, the estimated probability of the inflation going over the upper threshold of the target is 55% in 2016 and 22% in 2017.
For the market, this probability is of 65% in 2016 and of 33% next year. ■