Brazil's financial market cuts 2026 inflation and GDP forecasts

g1.globo.com (Portuguese) —

Brazil's financial market lowered its inflation estimate for 2026 and reduced its GDP growth projection for this year, according to the Central Bank's weekly Focus report released Monday. The inflation forecast for 2026 fell from 5.22% to 5.19%, while the 2026 GDP growth estimate was cut from 1.83% to 1.80%. The adjustment comes despite ongoing Middle East conflict raising oil prices, which could pressure Brazilian inflation through higher fuel costs. The market maintained its projection for two additional interest rate cuts this year, with the Selic rate expected to end 2026 at 13.25%. The exchange rate forecast for year-end was lowered to R$5.05 per dollar.


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