Latest Focus Report Predicts Brazil’s Economic Squeeze

Latest Focus Report Predicts Brazil’s Economic Squeeze

Brazil’s Central Bank lifted the Selic rate to 14.25% last week, triggering fresh economic forecasts in its Monday, March 24, 2025, Focus Report. Financial markets now expect inflation to hit 5.65% in 2025, down slightly from 5.66%, but still far above the 3% target. Growth projections dipped too, with GDP growth for 2025 revised to […]

Following the decision of the Central Bank of Brazil to raise the basic interest rate to 14.25 percent per year, the financial market forecasts for economic growth and inflation in 2025 were revised downwards, according to the Focus Bulletin published on Monday.

The recent increase in the Selic rate to 14.25% a year resulted in a revision of financial market expectations in relation to GDP and inflation for 2025. The Focus Bulletin's projection of economic growth was adjusted from 1.99% to 1.98%. For the following years, the GDP forecast remains at 1.6% for 2026, while the estimates for 2027 and 2028 are 1.9% and 2%, respectively. Regarding the dollar exchange rate, expectations indicate that the curren…

Expectation for the expansion of the economy falls from 1.99% to 1.98%; according to the expert, 'tightening has not yet had enough impact to reanchor market expectations' The post After another interest rate hike, the market reduces the GDP forecast and inflation appeared first on Mercantile Monitor.

The average number of financial analysts interviewed for the Focus Bulletin this week indicated a reduction in the inflation projection for this year. At the same time, it also began to project slower economic growth this year. According to the report released this Monday (24) by the Central Bank, the median of the inflation estimates were [...]