Banco BTG Pactual SA cut its forecast for increases in Brazil’s benchmark interest rate, known as Selic, after the central bank published its quarterly inflation report yesterday.
Policymakers are likely to raise rates by 0.25 percentage point at their April meeting and 0.25 percentage point in June, leading the Selic to 12.25 percent, Eduardo Loyo andClaudio Ferraz, economists at BTG Pactual in Rio de Janeiro, wrote in a March 30 report. BTG Pactual had previously forecast increases of 0.5 percentage point at each meeting.