Brazil's market cuts 2026 dollar and GDP forecasts, sees Selic at 11.75% in 2027

infomoney.com.br (Portuguese) —

Brazil's financial market lowered its 2026 dollar forecast to R$5.05 from R$5.13 and cut its GDP growth projection to 1.80% from 1.83%, according to the Central Bank's Focus report released Monday. The official inflation estimate for 2026, measured by the IPCA, fell to 5.19% from 5.22%, while the Selic interest rate projection held at 13.25% annually for a second straight week. For 2027, the Selic forecast dropped to 11.75% from 12.00%. The data was collected before Sunday's presidential runoff election results. The 2027 dollar estimate fell to R$5.15, and the 2027 GDP growth projection edged down to 1.31%.


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