Brazil: Possibility of Higher Interest Rates

Consensus Forecasts

In March, the Brazilian central bank again left its SELIC rate unchanged at 7.25%, but in its monetary policy statement it hinted at the possibility of higher rates in order to tackle inflation. The prospect of monetary tightening is backed by February’s inflation report, which shows the annual rate creeping up to 6.3%, just shy of the central bank’s target ceiling of 6.5%. The consensus is predicting that borrowing costs will edge up over the next 3- and 12-month horizon as policymakers attempt to keep inflation under control.

You can download a sample of Latin America Consensus Forecasts at www.consensuseconomics.com.

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