Brazil analysts cut their 2023 inflation forecast for the second straight week while reaffirming bets for a slow monetary easing cycle after central bank chief Roberto Campos Neto pointed to an “improving” outlook.
Annual inflation will end the year at 5.71%, down from a prior estimate of 5.80%, according to a weekly central bank survey of economists published Monday. Still, analysts made no changes to their bets that the benchmark Selic rate will fall to 12.50% by December and then 10% at the end of 2024.
Brazil central bankers have held borrowing costs at 13.75% since September despite criticism from President Luiz Inacio Lula da Silva. They were among the first to lift rates after the pandemic, delivering an aggressive tightening cycle lasting 18 months. Annual inflation eased for the 12th straight time in mid-May, to 4.07%, and is now back in their tolerance range.
Read More : Analysts in Brazil Lower Inflation Forecasts and Maintain Confidence in High Interest Rate Predictions