Brazil Economists Raise 2027 Selic Forecast as Inflation Simmers

Brazil economists raised their interest rate forecast for next year as inflation comes under pressure from resilient domestic demand and an energy shock caused by the Iran war.

The benchmark Selic will hit 11.25% at year-end 2027, up from the prior estimate of 11%, according to a weekly central bank survey of economists published on Monday. Analysts see inflation above the 3% target through 2029.