INSUBCONTINENT EXCLUSIVE:
Report.Financial markets now expect inflation to hit 5.65% in 2025, down slightly from 5.66%, but still far above the 3% target
Growth projections dipped too, with GDP growth for 2025 revised to 1.98% from 1.99%.The rate hike, the fifth in a row, tackles a 5.06%
inflation surge over the past year, spiked by a 1.31% jump in February from soaring electricity costs
Analysts see the Selic climbing to 15% by year-end, with the real weakening to 5.95 per dollar in 2025 and 6 reais by 2026.The bank eyes
stubborn service-sector prices, hinting at a smaller hike in May.Fiscal strain adds pressure, with public debt at 78% of GDP and a 2024
Markets predict GDP at 1.6% in 2026, creeping to 2% by 2028, while the Selic eases to 12.5% in 2026 and 10% by 2028.Latest Focus Report
(Photo Internet reproduction)Higher rates aim to cool demand, raising loan costs and favoring savings
Banks, factoring in risks, charge more, slowing spending
at 6.5%, complicate the outlook
