Brazil Analysts Hike Forecasts for Interest Rate and Inflation
- Economists see faster inflation from 2024 through 2026
- Traders scrapped bets for an additional rate cut this month
A shopper browses produce at a grocery store in Sao Paulo, Brazil.
Photographer: Tuane Fernandes/BloombergThis article is for subscribers only.
Brazil analysts raised their interest rate forecasts for this year and next as they also see faster inflation through 2026, indicating the outlook for Latin America’s largest economy continues to worsen.
The benchmark Selic will hit 10.25% this December, up from the prior estimate of 10%, according to a weekly central bank survey published on Monday. Analysts raised their median forecast for rates at end-2025 to 9.18% from 9%.