Following a recent inflation spike and comments from Brazilian President Lula da Silva suggesting potentially looser fiscal policy, analysts have increased their forecasts for Brazil’s benchmark Selic rate in 2025 to 11%, up from 10.75%. Brazil’s economic activity outpaced expectations in August, with monthly growth at 0.2% and an annual increase of 3.1%. This prompted policymakers to resume monetary tightening in September, raising rates to 10.75%.