Brazil interest rates ‘could fall by one percentage point’
Economists in Brazil predict that the country’s central bank may cut the benchmark interest rate by a full percentage point next month, which could make Brazilian property cheaper for investors.
Policy-makers are forecasted to lower the Selic rate to 11.75 per cent from 12.75 per cent in the second week of March, according to Bloomberg.
Analysts covering the Brazilian economy have lowered their predictions from the 12 per cent estimation they made the week before, the news provider reports.
Officials at the central bank are expected to make the cut in an attempt to revive the slowing economy, as expansion is predicted to slow to 1.5 per cent in 2009, a reduced estimate compared to the previous week’s forecast of 1.7 per cent growth.
Meanwhile, Dow Jones Newswires reports that the Selic interest rate is estimated to end the year at 10.5 per cent, according to the central bank’s weekly market survey.
