VARIATION ANALYSIS ON NATIONAL STANDARD INTEREST RATE

• Autor(a) principal: Haddad, Michel Ferreira Cardia
• Data de Publicação: 2012
• Tipo de documento: Artigo
• Idioma: eng; por
• Título da fonte: Future Studies Research Journal: Trends and Strategies
• Texto Completo: https://www.revistafuture.org/FSRJ/article/view/99

This study’s main objective is to analyse an econometric model for forecasting purposes concerning the interest rate which is adopted as standard reference within the Brazilian economy, namely, the Actual-Selic rate, so as to verify the feasibility of performing short term predictions as to its variations. Thus the major variables that impact the Actual-Selic rate, such as price variations of agricultural and power commodities, national industrial production level, exchange rate and public sector net debt, are detailed. The modern macroeconomic approach describes the relevance of the Central Bank upon achievement of its goals so as to maintain the economic stability, amongst which lies the convergence of verified interest rates with the Selic rate target, as set forth by the Monetary Policy Committee (COPOM). Furthermore, this study poses to explain the relevance in forecasting, with a reasonable level of accuracy, the benchmark interest rate of Brazilian economy. The proposed model may be used to support decision making concerning investment strategies and as an additional tool for the monitoring of the achievement of macroeconomic policy objectives.