Unsurprisingly, BC keeps interest rate at 14.25% – In SEE – JornalOleme EN

“So it can not be too conservative to maintain the Selic rate at a time when economic activity continues to decline, inflation is still high and gives only slight signs of slowing down,” he said in a statement. To readjust it up, the central bank has excess demand pressure on prices because higher interest rates more expensive credit and stimulate savings. “However, it considers that the high level of inflation in twelve months and the expectations of inflation distant from the objectives of the target system does not provide room for monetary easing,” argue directors.

for him, the rate change was not expected because the market believes that the curve inflation need to confirm once and for all that you are moving towards convergence the goal and because the fiscal deterioration occurs in a high speed. All directors , and the president of the Central Bank, who vote in decisions on the rate of interest , decided by the stability of rate Selic – something that does not happen for about six months.

the third decision on the Selic in 2016 will be announced in the evening as the meeting of the last Copom two days.

the expectations of analysts are that the rate may start to fall in the second half, following the downward trend of the inflation .

the analysis of the behavior of inflation in 2016, was almost unchanged compared to previous data, from 7.08% to 6.98%. The expectation of economists surveyed by the Central Bank in the last weekly newsletter Focus is that the rate will end the year at 13.25% against 13.38% forecast in the previous report.

Until then, it is possible that already in action a possible government Michel Temer, if the impeachment of President Dilma is approved by the Senate.

currently, the Brazilian economy goes through the worst recession in its history. For 2017, the expectation of growth in the economy (Gross Domestic Product – GDP – the sum of all wealth produced in the country) was changed from 0.20% to 0.30%. The accumulated IPCA had fallen to 9.91% in the 12 months ended in March.

The projected above the center of the Goal 4.5%. “If the central bank lowered the rise or interest could now cause noise, which would not be good,” says José Márcio Camargo, professor and chief economist at PUC-RJ. interest Basic are at this level since the end of July 2015.

This is because the performance of fixed income funds rises along with the Selic .