Stable Projections for Inflation and Financial Market Trends

According to the Focus report released by the Central Bank, market projections for Brazil's official inflation remain slightly on an upward trajectory. The projection for 2026 remains stable at 5.02%, while the expectation for 2027 increased from 4.22% to 4.24%. This behavior reflects a combination of macroeconomic factors, including cost pressures and expectations of monetary policy. Additionally, the smooth IPCA increased slightly to 4.32%, indicating a gradual trend towards higher inflation. However, market economists maintain relatively stable projections for the benchmark interest rate (Selic): 13.75% for 2026, 12.00% for 2027 and 10.50% for 2028. These projections suggest that the market expects a gradual deceleration in interest rates over the next few years, following reduced inflationary pressures. Other relevant projections include GDP growth, which was slightly revised downward for 2027 and 2028, with expectations of more moderate economic expansion in Brazil over the coming years.