Markets expect Selic to reach 12.25% in 2011

According to the latest Central Bank survey, the Focus report, financial market analysts now expect Brazil’s benchmark interest rate, known as the Selic, to close out 2011 at 12.25%.

Market analysts expect the Selic to begin to rise this month when the Central Bank’s Monetary Policy Committee meets on the 18th and 19th. The forecast is for a one percentage point rise to 11.75%.