Brazil Analysts Raise 2026 Key Rate Bets on Price Pressures

Brazil economists raised their key rate forecast for the end of this year while also boosting their 2026 inflation estimates for the 10th straight week as domestic demand and the Iran war drive price pressures.

The benchmark Selic will stand at 13.25% this December, up from the prior forecast of 13%, according to a weekly central bank survey of economists published on Monday. Analysts see annual inflation accelerating to 4.92% at the end of this year, above both the 4.91% prior estimate and the 3% target.