Market sees policy interest rate under pressure

If the consensus view among market economists proves to be correct, the Central Bank will keep the Selic policy interest rate for quite some time at the current 13.75% before starting a process of interest rate easing. The stimuli contracted for next year and the uncertainties surrounding the future government’s handling of fiscal policy have led the market to expect a very gradual movement of monetary easing and have given rise to discussions about the possibility of the Selic going up again in 2023, while part of the players does not expect reductions in the basic interest rate next year.