Credit Suisse sees Brazil’s Selic at 9.75%, reduces projection for 2022 GDP from 1.5% to 1.1%

Regarding economic activity, economists at the Swiss bank maintained the projection of GDP growth at 5.3% this year, but reduced the estimate for 2022 GDP from 1.5% to 1.1%.

RIO DE JANEIRO, BRAZIL - At a time when inflation continues to surprise upward, and the scenario is more challenging, Credit Suisse raised its estimate for the IPCA this year from 8.1% to 8.5% and now expects inflation to end 2022 at 5.2%, no longer at 5.0%, due to the effect of high inflationary inertia on wages and services.

With this context in hand, the Swiss bank kept unchanged the expectation for the Selic at 8.25% at the end of this year, but began to see a longer cycle, with the introductory interest rate at 9 . . .

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