BRAZIL: Interest Rate Forecast For 2018 Kept Unchanged At 7%

(RTTNews) - Economists polled by the Brazilian central bank kept their estimates for the country's benchmark interest rate (Selic) unchanged for the thirteenth consecutive week at 7% by the end of 2018. The forecast for the average rate in 2018 decreased to 6.75%, from 6.78% last week and 6.84% four weeks ago.

Earlier this month, the Brazilian central bank's Monetary Policy Committee (Copom) cut the country's benchmark interest rate to a record low 7.00% from 7.50%, in line with market expectations.

The Brazilian central bank said it could cut the interest rate further next year depending on economic conditions.

"The committee sees, at this time, a new moderate reduction in the monetary flexibilization magnitude as adequate. This view for the next meeting is more prone to scenario changes and risks than in previous meetings. From now on, the committee understands that the current cycle stage requires caution in the management of monetary policy," the bank said.