Brazil interest rates to hit 7.00% this year

Expectations for 2021 Brazilian inflation and interest rates rose to new highs, a survey of over 100 economists showed, with the central bank’s benchmark Selic rate expected to hit 7.00% by the end of the year.

The central bank has raised borrowing costs to 4.25% this year, and is expected to raise it by at least another 75 basis points on Aug. 4.

Next year’s inflation outlook inched up to 3.8% from 3.75%, the survey showed, creeping further above the central bank’s goal of 3.50%.

The FOCUS survey showed that this year’s growth outlook held steady at 5.3%.

Original Story: Reuters | Staff 
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Edition: Prime Yield