Central Banks

Brazil Analysts See Less Space for Interest Rate Cuts in Medium-Term

  • Central bankers say all options are on the table for rates
  • Annual inflation hit ceiling of tolerance range in July
Street vendors in front of the Central Bank of Brazil headquarters in Brasilia, Brazil.Photographer: Gustavo Minas/Bloomberg
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Brazil analysts raised their 2026 year-end interest rate forecasts as central bankers say they have all policy options on the table to tame above-target inflation.

The benchmark Selic will hit 9.5% in December, 2026, up from the prior estimate of 9%, according to a weekly central bank survey published Monday. Analysts held their estimates unchanged for end-2024, at 10.5%, and for end-2025, at 10%.