Bradesco Trims Year-End Selic Outlook

Brazilian rates are likely to rise at a slower pace amid an increasing likelihood of a global economic slowdown, which will pressure economic activity in Brazil as well as commodity prices, according to Bradesco. Dalton Gardiman, chief economist at Banco Bradesco BBI, the investment arm of Brazil’s largest non-government bank, has lowered his year-end 2008 Selic target by 25bp to 14.25%. He now expects just one further increase of 50bp at the October 28/29 Copom meeting and no change at the December meeting. The bias on inflation is now downward, according to the analyst.