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Brazil economists raise inflation, rate forecasts after Lula reelection

By Reuters News

SAO PAULO, Nov 3 (Reuters) - Private-sector economists raised their forecasts for Brazil's inflation and interest rates in the first weekly central bank survey since President Luiz Inacio Lula da Silva's reelection, after the surprise result on October 25 triggered a sharp selloff in Brazilian assets.

The forecast for year-end inflation rose to 4.76% from 4.34% for next year, while expectations for the benchmark Selic rate increased to 13.50% from 13.25% for end-2026 and to 12.50% from 11.75% for end-2027.

Brazil's central bank has an inflation target of 3%, plus or minus 1.5 percentage points. The bank's board is set to announce its next interest rate decision on Wednesday, after delivering five straight 25-basis-point cuts to 13.75%.

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