Central Bank expected to raise interest rates to their highest level in 5 years, according to analysts.

247 - The Central Bank's Monetary Policy Committee meets this Wednesday (16) to set the basic interest rate. The decision will be announced after 18 pm.

Most economists in the financial market expect the Selic rate to be raised from the current 10,75% to 11,75% per year, the highest level since April 2017 — when it was at 12,25% per year. That is, in almost five years.

Some analysts predict that the rate could rise even further on Wednesday, exceeding the 12% annual mark, reports G1.

If confirmed, this will be the ninth consecutive increase in the economy's basic interest rate. At the same time, it will also mark one year of the current cycle of rising interest rates. The process of raising the Selic rate began in March of last year.

The financial market expects further increases in the Selic rate in the coming months. The forecast is that the basic interest rate will rise to 12,5% ​​per year at the beginning of May and to 12,75% per year in mid-June — a level at which 2022 would end.

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