Skip to content
Markets
Economics

Wall Street Banks Bet Brazil to Speed Up Rate Hikes Next Week

  • JPMorgan, Goldman Sachs, Morgan Stanley focus on fiscal
  • Brazil central bank had signaled 100 bps hike for Wednesday

Major Wall Street firms warned that Brazil’s worsening fiscal outlook is putting pressure on central bankers to accelerate their tightening pace and deliver a bigger-than-expected interest rate hike next week. 

JPMorgan Chase & Co., Goldman Sachs Group Inc, Credit Suisse Group AG and Morgan Stanley all raised their forecasts for interest rates since Thursday and now see policy makers led by Roberto Campos Neto raising the benchmark Selic rate by at least 125 basis points on Wednesday to 7.5%. Analysts at UBS BB and Barclays Plc expect a 150 basis points hike.