• Michel Ferreira Cardia Haddad FGV- EESP - Escola de Economia de São Paulo



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.


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Author Biography

Michel Ferreira Cardia Haddad, FGV- EESP - Escola de Economia de São Paulo

Mestrando em Economia e Finanças pela Escola de Economia de São Paulo (EESP) da Fundação Getúlio Vargas e Gerente de Gestão de Riscos da Deloitte Consulting



How to Cite

Haddad, M. F. C. (2012). VARIATION ANALYSIS ON NATIONAL STANDARD INTEREST RATE. Future Studies Research Journal: Trends and Strategies, 4(1), 140–158.