Central Banks
Brazil Analysts Lift Rate Forecasts as Spending Cuts Disappoint
- Economists raised 2025 year-end Selic forecast for third week
- Government unveiled plan to cut spending by BRL70b in 2 years
“The central bank began its monetary tightening campaign in September to tame inflation, which in early November quickened to an annual rate of 4.77%.”
Photographer: Maria Magdalena Arrellaga/BloombergThis article is for subscribers only.
Brazil economists increased their interest rate and inflation estimates for next year after the government’s spending cut plan announced last week failed to ease market anxiety over fiscal policy.
The benchmark Selic will reach 12.63% in December, 2025, up from the prior estimate of 12.25%, according to a weekly central bank survey of economists published Monday. Analysts also lifted their forecasts for consumer price increases at the end of next year to 4.4%, notching their seventh straight rise.