INSUBCONTINENT EXCLUSIVE:
Inflation, tracked by the IPCA, exceeds the 3% target, with forecasts at 5.1% for 2025 and 3.9% by mid-2026.Markets expect even worse,
projecting 5.66% this year, showing expectations drift far from the 4.5% ceiling
Copom highlights a grim reality: services inflation climbs, industrial goods face exchange-rate pressures, and food prices stay high.The
(Photo Internet reproduction)The tightening cycle shows no end, as Copom ties its moves to ongoing inflationary threats, not just past lags
Markets once bet on a 0.5-point rise for May 6-7, mirroring a 2022 slowdown from 1 to 0.5 points.Now, uncertainty reigns, with a 15% Selic
looming if the toughest option hits
battle with inflation outpacing targets since 2024, driven by global and local pressures
The committee projects rates staying high into 2026, with markets eyeing 12.5% by then.For now, Brazil faces a tense wait, as Copom balances
growth and price stability in a fragile economy
The figures reveal a nation at a crossroads, navigating uncertainty with resolute, if ambiguous, action.
