Economists Expect Rate Increase of 50 bps from COPOM

We ran our Brazilian forward swap curve analysis today and compared it to economists’ estimates for future  SELIC rates, Brazil’s Fed Funds Rate.  The market is lowering future rate hike expectations, while the economists have been increasing their estimates.  As a result, the economists are now predicting a 50 bps hike, while the market is only looking for a 25 bps increase.  Click on the link to see the graph.

The market only expects a 25 basis point hike from the COPOM after their meeting today and tomorrow



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