Central Banks
Brazil Analysts See Key Rate at 15% in June, More Inflation
- Central bankers have pledged rate hikes to 14.25% by March
- Currency has pared losses, but is still down 20% this year
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Brazil economists raised their forecasts for inflation and borrowing costs in 2025 after central bankers reinforced their commitment to extend large interest rate hikes into early next year.
The benchmark Selic will rise to 15% by June of 2025, according to a weekly central bank survey of economists published Monday. Monetary easing is expected to start later that year, with the key rate falling to 14.75% by December, and extend into 2026 to take it to 11.75% by year-end.