Economics
Brazil Economists See More Key Rate Increases This Year and Next
- Analysts see inflation edging closer to target for this year
- Central bank removed pledge for lower rates at last meeting
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Brazil economists raised their interest rate forecasts for this year and next as inflation calls edge closer to target and the central bank warns recent price shocks have been more persistent than expected.
Policy makers will lift the benchmark Selic to 3.5% by December, above last week’s forecast of 3.25% and the current level of 2%, according to a central bank survey published on Monday. Economists also lifted their 2022 key rate estimate to 5% from 4.75% previously.