Central Banks
Brazil Analysts See Higher Key Rate and Inflation Through 2027
- Economists see key rate at 12% this month, 13.5% at end-2025
- Traders see odds of full percentage point rate hike this week
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Brazil economists lifted their estimates for inflation and borrowing costs through 2027 as investors bet the central bank will turn more aggressive on interest rate hikes at its meeting this week.
The benchmark Selic will rise to 12% at Wednesday’s policy decision, up from the prior estimate 11.75%, according to a weekly central bank survey of economists published Monday. Analysts also lifted their forecasts for the key rate at the end of next year to 13.5%, from 12.63% before.