Markets raise 2022 inflation forecasts for Brazil

Amid a growingly pessimistic scenario, analysts from top-rated investment firms surveyed by the Brazilian Central Bank have raised their year-end inflation forecasts for the country from 6.45 to 6.59 percent. The streak of inflation expectation bumps is now at ten straight weeks.

Meanwhile, markets raised their expectations for the Selic benchmark interest rate, with the median year-end projection at 13 percent. The rate is now at 11.75 percent after the Central Bank raised it by 1 percentage point last week — and indicated that a further 1-point bump is in store for May.

GDP forecasts for the year have modestly increased from 0.49 to 0.50 percent.