Central Banks
Brazil Analysts See Higher Interest Rates Through 2027
- Central bankers are expected to raise ratea this week
- Annual inflation is seen at 4.59% in December, above 3% goal
The Central Bank of Brazil headquarters in Brasilia.
Photographer: Gustavo Minas/BloombergThis article is for subscribers only.
Brazil analysts lifted their estimates for the benchmark interest rate between 2025 and 2027 as investors worry about President Luiz Inacio Lula da Silva’s commitment to fiscal discipline.
The benchmark Selic will hit 11.5% in December of 2025, up from a prior estimate of 11.25%, according to a weekly central bank survey of economists published by the central bank on Monday. They also lifted their key rate forecasts to 9.75% by year-end 2026 and 9.25% for 2027. Estimates for next month stayed unchanged at 11.75%.