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(Bloomberg) -- Analysts will be looking to BCB’s Quarterly Inflation Report for signs on how long policy makers will be able to hold interest rates at a record low as the current easing cycle comes closer to an end.

• BCB inflation forecasts for 2018 and 2019 in particular may signal how long the Selic rate can be held at low levels without imperiling inflation targets; analysts also looking for clues on when it will be necessary to raise rates again
  • Projections may hold the answer for these questions, Goldman Sachs says in note signed by Alberto Ramos, Paulo Mateus and Gabriel Fritsch
• NOTE: Brazil targets inflation at 4,50% in 2018, 4.25% in 2019 and 4% in 2020
• BCB mentioned an upward revision of its CPI projection for 2018 in the statement after the Copom meeting, so analysts will be looking for more detail on that in the inflation report, says Alessandra Ribeiro, economist at Tendencias advisory firm, in a phone interview
• Forecasts will be an important indicator of how long rates can remain at 7% and whether BCB will need to tighten monetary policy later on, says Antonio Madeira, chief economist at MCM Consultores Associados
  • MCM Consultores Associados expects Selic rate to reach 7% in the end of this year, rising again to around 8.5% by 2019
• Newton Rosa, chief economist at SulAmerica Investimentos, said in a phone interview that he expects a stable Selic throughout 2018
  • BCB doesn’t usually move rates during an year of presidential elections, unless there is an imponderable and unpredictable shock: Rosa
  • Rosa sees terminal Selic rate at 7%, with downward risk
• Inflation report is expected to provide year-end projections for 2019 and may indicate whether BCB will be able to deliver inflation at or below target in 2018 and 2019, says Rodrigo Melo, chief economist at Icatu Vanguarda
• BCB should give some signs, especially regarding the end of the easing cycle, although it is very difficult at this moment to gauge how long Selic rate will remain at same level as the end of the cycle, says Cristiano Oliveira, chief economist at Banco Fibra
• NOTE from Sept. 6: Brazil Cuts Key Rate to 8.25%, Hints at Slower Easing Ahead
• NOTE from Sept. 18: Brazil Economists See Key Rate at All- Time Low Throughout 2018

--With assistance from Josue Leonel. To contact the translator on this story: Vinícius Andrade in São Paulo at vandrade3@bloomberg.net To contact the translation editor responsible for this story: Ney Hayashi at ncruz4@bloomberg.net Reporter on the original story: Vinícius Andrade in São Paulo at vandrade3@bloomberg.net Editors responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net Marisa Castellani