Economics
Brazil’s Rate Is Headed to 14% From Just 2% in Depth of Pandemic
- Central bank says rate hikes ending, analysts see more coming
- With inflation above 12%, key rate seen back at 2016 peak
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Brazil’s inflation is running so hot that a growing number of economists now expect the central bank to increase interest rates far beyond what policy makers deemed necessary just a few months ago.
Economists at Credit Suisse Group AG and BNP Paribas SA are among those who expect Brazil’s benchmark interest rate, now at 12.75%, to end the current monetary tightening cycle at or near 14.25%, matching its latest peak in 2016. Most economists surveyed by Bloomberg still see it ending the year at 13.25%.