Ibovespa Live: Check out what moves the Stock Market, Dollar and Interest Rates this Monday

Economists consulted by the Central Bank began to see higher interest rates at the end of 2024, with projections now including a cut of just 0.25 percentage points in the Selic at this week’s Monetary Policy Committee (Copom) meeting. The weekly Focus survey, which captures the market’s perception of economic indicators, showed that economists raised their estimate for the level of interest rates at the end of May to 10.50%, interrupting a 38-week sequence at 10.25%. The BC will close its two-day monetary policy meeting on Wednesday, May 8th, in a scenario of renewed uncertainty that led the BC president, Roberto Campos Neto, to open the doors in April for the Copom to reduce the pace of cuts in the Selic, currently at 10.75%, although its most recent future guidance indicated maintaining the pace of 0.50 points. Implied probabilities in BCBWATCH interest rate futures contracts show almost a 90% chance of the BC cutting the Selic rate by just 0.25 percentage points this week. Economists consulted in a Reuters survey were more divided regarding the pace of the Central Bank’s monetary easing next week, with the majority now believing in a slowdown to 0.25 points, although a significant portion believe in maintaining the 0.50 point step. The median expectation in the Focus bulletin for the Selic level at the end of this year rose to 9.63%, from 9.50% in the previous week. For 2025, the prognosis remains at 9.00%. (Reuters)