Economics
Brazil Economists See Higher Key Rate as Inflation Accelerates
- Selic rate seen at 7.5% at end-2021, 7.5% at end-2022: survey
- Central bankers said they will tame inflation expectations
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Brazil analysts raised their benchmark interest rate forecasts for this year and next even after the central bank said it will continue to deliver steep borrowing cost hikes and do all in its power to tame inflation.
The central bank will lift the benchmark Selic to 7.5% at the end of this year, above the previous estimate of 7.25%, according to a survey published on Monday. Their forecast for the interest rate in 2022 was also raised to 7.5%, the second consecutive weekly increase.