INSUBCONTINENT EXCLUSIVE:
(Analysis) Amid global and local fiscal pressures, Brazil may end its monetary easing, with the Selic rate potentially stabilizing at
10%.These expectations stem from delayed rate cuts by the United States Federal Reserve and increased fiscal strain within Brazil due to
changes in primary fiscal targets.Key financial players like Citi, XP Investimentos, and JPMorgan see a double-digit Selic rate as a strong
Pastore - Associados recently raised their forecast from 9.25% to 10%, incorporating three quarter-point cuts starting at the next COPOM
Might Not Go below 10% Despite Hopes to The Contrary
(Photo Internet reproduction)Economist Alexandre Schwartsman notes that strong growth, fiscal doubts, and a strong dollar limit further rate
cuts.He has increased his growth forecast from 1.8% to 2.3%, citing an economy outperforming its potential.Recent United States inflation
data has led to a reduced forecast, from six expected rate cuts to just one or two.A surging dollar, now over 2% higher and solidifying
climbing.Despite a vibrant job market and gradually decreasing inflation, expectations for significant rate cuts have waned.Caio Megale of
XP Investimentos advises caution due to rising commodity prices and falling emerging market currencies.With the upcoming COPOM session, the
Brazilian Central Bank may halve the pace of interest rate cuts due to rising domestic inflation and ongoing fiscal expansion.Analyst Dalton
