Central Banks
Brazil Economists Lift Rate Bets as Lula Fights With Central Bank
- Central bankers are holding interest rates steady at 13.75%
- Government mulls early review of current inflation goals
Roberto Campos Neto
Photographer: Tuane Fernandes/BloombergThis article is for subscribers only.
Brazil analysts raised their interest rate estimates for this year and next as the government mulls an early review of inflation targets to defuse tensions between President Luiz Inacio Lula da Silva and the central bank.
The benchmark Selic will be reduced to 12.75% by December, instead of the prior estimate of 12.5%, according to a weekly central bank survey published Monday. Analysts also lifted their forecast for rates at the end of 2024 to 10% from 9.75% before as they see a slower pace of rate cuts ahead.