Brazil Central Bank Trims 2026 Growth Outlook
Brazil central bank projects inflation near its three percent target while lowering its economic growth forecast for 2026 to 1.8 percent. The cautious outlook supports expectations for further interest rate cuts this year.
Brazil's central bank projected inflation at 3.1% for the second quarter of 2028, reinforcing market bets for further monetary easing. The outlook follows last week's reduction of the benchmark Selic rate by 25 basis points to 13.75%. Lower borrowing costs aim to support economic activity as growth forecasts face headwinds.
