Brazil Analysts See Deeper Recession, Faster CPI, Higher Rates

Brazil analysts forecast the central bank will be forced to raise borrowing costs next year even as Latin America’s largest nation enters a worse recession than previously expected.

Policy makers will increase the benchmark rate to at least 14.5 percent next year, compared to the previous week’s forecast of 14.25 percent, according to the Dec. 11 central bank survey of about 100 economists. Analysts expect the economy in 2016 to shrink 2.67 percent, versus a 2.31 percent contraction seen in last week’s survey.