HALISTER1: Brazil’s Fator Sees BCB Cutting Selic Rate by 150bps in May

Brazil’s Fator Sees BCB Cutting Selic Rate by 150bps in May

(Bloomberg) -- (Translated by Google and reviewed by Bloomberg editors.)
  • Central Bank should reduce the Selic rate by 1.50 pp at the 31st Copom meeting, continue with cuts of 0.75 pp at the July and September meetings and cut interest by 0.25 pp in October, says Jose Francisco Goncalves, Chief economist at Banco Fator, in a telephone interview.
  • Previous Factor Forecast for May 31 was 1.25 pp cut
  • Factor also revises the Selic projection, from 8.25% to 8%, at the end of the year
  • Inflation plummeting, and economy that shows no sign of recovery justify revision, according Goncalves
  • Progress of Welfare reform is in line with expected and external environment is also helping
Original Story: Fator vê corte de 1,50 pp em maio, Selic a 8% no final de 2017 To contact the translator on this story: Ney Hayashi in Sao Paulo 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

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Jose Goncalves (Banco Fator SA)

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