Economics
Brazil Analysts Jack Up Inflation, Rate Forecasts as Woes Grow
- Selic rate seen at 8.75% in 2021 and 9.5% in 2022: survey
- New social spending program pressures central bankers’ pace
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Brazil analysts expect a higher interest rate both this year and next after the government said it would circumvent the public spending cap to increase spending on the poor.
The central bank will lift the Selic to 8.75% at the end of this year and 9.5% in 2022, up from prior projections of 8.25% and 8.75% respectively, according to a survey published on Monday. Analysts also lifted their year-end inflation forecasts to 8.96% this year and 4.40% in 2022, both above target.