Economists See Brazil Rates Below 7 Percent for First Time Ever

(Bloomberg) -- Brazil’s benchmark interest rate will fall below 7 percent for the first time ever next year as inflation remains below the official target, economists surveyed by the central bank forecast.

Policy makers will extend their aggressive monetary easing cycle into 2018 to cut the benchmark Selic rate to 6.75 percent from its current level of 7 percent, according to some 100 economists polled weekly by the monetary authority. They also forecast inflation to accelerate to 3.96 percent, still below the 4.5 percent target for next year.

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