No further room

BRAZIL ECONOMICS - Report 29 Jun 2026 by Alexandre Schwartsman, Cristina Pinotti and Diego Brandao

The inflation and labor market data released last week, although pointing to some signs of weakening, are insufficient to support the continuation of Selic rate cuts. The Central Bank's projections do not guarantee convergence of inflation to the target in early 2028 with a cut in August. In the Monetary Policy Report, the BC once again faces a larger-than-expected output gap. Given this, our base case for the next Copom meeting is a pause in the monetary easing cycle.

Now read on...

Register to sample a report

Register
Must have at least 8 characters
Sign-in
Forgot your password?
Copyright 2026 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.