Brazil Economists Raise Inflation and Rate Forecasts
Private-sector economists in Brazil raised their inflation and interest rate forecasts following the recent reelection of President Luiz Inacio Lula da Silva. Growth and currency projections also shifted amid market reactions to the election outcome.
Private-sector economists in Brazil raised 2027 inflation forecasts to 4.76% and benchmark interest rate projections to 12.50% following the recent presidential runoff. The upward revision follows the reelection of President Luiz Inacio Lula da Silva on October 25 over right-wing Senator Flavio Bolsonaro. Investors are recalibrating macroeconomic models as fiscal policy concerns trigger a broader selloff across local asset classes.
