Economics
Brazil Economists See Benchmark Rate Above 10% by End of 2022
- Inflation expectations rise further above target in survey
- Central bank set faster tightening pace of 150 bps last week
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Brazil analysts for the first time estimated that the country’s benchmark interest rate will end 2022 in the double digits, as concerns about deteriorating public finances forced the central bank to accelerate its monetary tightening campaign last week.
Economists anticipate the Selic rate will reach 10.25% in late-2022, compared with their previous 9.5% forecast, according a weekly survey published by the central bank on Monday. They also see the key rate at 9.25% late this year, in line with the central bank’s guidance of a second consecutive hike of 150 basis points in December. The Selic currently stands at 7.75%.