Brazil central bank lowers 2025 growth forecast, inflation to stay high

Investing.com -- Brazil’s central bank has lowered its economic growth forecast for this year to 1.9%, down from the 2.1% it predicted in December. The announcement came on Thursday, as part of the bank’s quarterly monetary policy report.

The report also highlighted that consumer prices are expected to stay above the bank’s maximum tolerance limit of 4.5% for the entirety of 2025. A decline in inflation is only expected to start in the last quarter of the year, but even then, it will remain above the target set by the bank.

Last week, the central bank had predicted an inflation rate of 5.1% for 2025. However, in its latest report, it has revised this estimate downwards for the following years. The bank now estimates inflation to be at 3.7% in 2026 and 3.1% in the third quarter of 2027. These are the latest periods covered by the bank’s current projections.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.Which stock should you buy in your very next trade?

With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

Unlock ProPicks AI