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Brazil's Economy Cools: Interest Rate Forecast Slashed
3 Aug
Summary
- Economists predict a drop in Brazil's benchmark interest rate.
- The Selic rate is now expected to end 2026 at 13.75%.
- This adjustment reflects increasing signs of economic slowdown.
Brazilian economists have lowered their year-end benchmark interest rate forecast, signaling a cooldown in Latin America's largest economy. The Selic rate is now projected to end 2026 at 13.75%, a decrease from the previously held 14% expectation.
This downward revision is attributed to increasing evidence that Brazil's economy is losing momentum. The central bank's latest survey of economists reveals this shift in sentiment as officials assess the current economic trajectory.
Further indications of economic deceleration are emerging. This evolving landscape suggests a strategic recalibration of monetary policy may be underway, with potential implications for investment and growth throughout the remainder of the year.
