Economics
Brazil Economists Raise Key Rate and Inflation Forecasts in 2021
- Inflation calls moving toward 2021 target midpoint of 3.75%
- Analysts also lifted economic growth forecast for next year
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Brazil economists raised their forecasts for both inflation and the key interest rate next year, clashing with central bank pledges to hold borrowing costs at a record low for the foreseeable future.
Policy makers will lift the benchmark Selic to 3% by the end of 2021, compared to the previous forecast of 2.75% and the current level of 2%, according a central bank survey of economists published on Monday. Analysts also raised their consumer price estimate to 3.40% in the fifth straight increase.