Central Banks
Brazil Analysts Cut Interest Rate Forecasts for First Time Since 2021 as Lula Prepares Fiscal Plan
- Economists see rates falling to 12.5% in December, from 13.75%
- Congress is expected to begin its debate on new fiscal rules
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Brazil analysts lowered their 2023 interest rate forecasts for the first time in a year and a half as President Luiz Inacio Lula da Silva puts the finishing touches on a proposal aimed to control the growth of public debt.
The benchmark Selic will fall to 12.5% this December, down from the prior estimate of 12.75%, according to a central bank survey of economists published Monday. It was the first reduction for 2023 since October, 2021. Estimates for borrowing costs at the end of next year remained unchanged at 10%.