Brazil

Following an unexpected 50 bps rate cut by Brazil’s central bank, analysts adjusted their interest rate projections. The latest survey of economists predicts the Selic rate to drop to 11.75% by December and further to 9% next year. The current year’s consumer price estimate is steady at 4.84%, but expectations are for it to decline to 3.88% in 2024. The bank initiated an aggressive rate cut to 13.25% and hinted at further reductions after annual inflation fell below the target.