Market forecast for 2012 interest rate (Selic) continues at 9.5%

For the ninth consecutive week, the Central Bank’s weekly market survey of financial institutions (the Focus report)
found that the market expects 2012 to end with the country’s benchmark
interest rate, the Selic, at 9.5%. On the other hand, the market
forecast for the Selic at the end of 2013 dropped slightly from 10.75%
to 10.50%.

Due to the close link between interest rates and inflation, it is
notable that market forecasts for inflation as measured by the IPC-Fipe,
the IGP-DI  and the IGP-M all followed the same pattern in the latest
survey: stable or falling this year, but rising slightly in 2013.