Brazil market sees inflation above 9% in 2021, Selic at more than 10% in 2022 – Focus report

RIO DE JANEIRO, BRAZIL – The financial market has promoted another round of significant worsening estimates for Brazilian financial and economic variables, now seeing Selic (the benchmark interest rate) at double digits in 2022, when inflation will be even further away from the target.

According to the Focus survey released by the Central Bank on Monday, November 1, the basic interest rate will reach 10.25% by the end of 2022, compared to the previous forecast of 9.50%. At the end of 2021, the Selic will be at 9.25%, compared to 8.75% in the scenario shown last week.

The dollar should be more expensive and will reach 5.50 reais by the end of 2021 and 2022, versus the previous forecast of 5.45 reais for both years.

The inflation forecast was raised once again – to 4.55% in 2022 (from 4.40%) and 9.17% this year (8.96% before).

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