Brazilian Economists reportedly see year-end 2026 Selic rate at 12.50% (prev. saw 12.25%); year-end 2027 selic at 10.50% (prev. saw 10.50%)

Brazilian economists are now projecting a slight increase in the year-end Selic rate for 2026 to 12.50% from a previous forecast of 12.25%, while maintaining the 2027 rate forecast at 10.50%. This adjustment may indicate a hawkish shift in sentiment, reflecting concerns about inflation or economic growth that could influence policy adjustments ahead. Traders should consider how these changes might impact the Brazilian real and cross-asset correlations with emerging market USD flows.