How to Access BRL Forward Curves and Download TLP Forecasts

Our platform enables users to access Brazilian forward curves and download TLP (Taxa de Longo Prazo) forecasts with ease. Follow these steps to get started:

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Step 1: Navigate to Interest Rate Curves

1. In the navigation menu, select “Interest Rate Curves.”

2. Choose BRL as the currency.

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Step 2: Locate TLP and IPCA Rates

1. Scroll down to find the card titled “TLP and IPCA Rates.”

   • TLP (Taxa de Longo Prazo): The benchmark long-term rate for loans issued by the Brazilian Development Bank (BNDES). It’s calculated monthly based on the IPCA inflation index and the yields of inflation-linked government bonds.

   • IPCA (Índice de Preços ao Consumidor Amplo): Brazil’s main inflation gauge, monitored by the Central Bank of Brazil (BCB) to guide monetary policy.

2. This card contains relevant forward curve data for Brazil.

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Step 3: Download the TLP Forecast

1. Click Download to export the TLP forecast data as an Excel file.

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Where Do Our Forecasts Come From?

• TLP Forecasts from BNDES: The Brazilian Development Bank (BNDES) is the primary source for TLP rates. BNDES is a government-backed institution that supports long-term investments and economic development projects. The TLP is used for financing provided by BNDES and reflects the cost of inflation-linked government bonds and the IPCA inflation index.

• IPCA Data from the Central Bank of Brazil (BCB): The Central Bank of Brazil (BCB) monitors and publishes IPCA data, which serves as the official measure of inflation in Brazil. It’s a critical indicator for setting monetary policy and adjusting financial instruments indexed to inflation.

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Understanding Key Brazilian Interest Rates

• CDI (Certificado de Depósito Interbancário): A benchmark reflecting the average interest rate for overnight loans between banks in Brazil.

• SELIC Rate: The central policy rate in Brazil, used by the Central Bank of Brazil to control liquidity and influence economic activity.

• BNDES Interest Rate: The rate for long-term financing provided by BNDES, often tied to TLP or SELIC. The formula incorporates factors such as financial costs, agent fees, and credit spreads.

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FAQs

What is the TLP?

The TLP (Long-Term Rate) replaced the TJLP and serves as the benchmark for loans from BNDES. It’s calculated based on:

• IPCA Inflation Index

• Yields of Inflation-Linked Government Bonds The TLP adjusts monthly and applies to long-term investments and loans.

What is the IPCA?

The IPCA (Extended National Consumer Price Index) is Brazil’s main inflation index. It’s monitored by the Central Bank to align inflation with monetary policy targets and is used for adjustments in indexed instruments like NTN-B bonds.