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The Likely

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Economy

Banco Central do Brasil trimmed growth outlook and projected inflation near target

Banco Central do Brasil lowered its 2026 economic growth forecast to 1.8% on September 24 while projecting inflation near 3.1% through early 2029. The report followed Copom's decision on September 16, 2026, to reduce the Selic rate to 13.75%.

Why it mattersLower growth projections alongside easing inflation forecasts suggest borrowing costs will continue to fall.

How much will Brazil’s COPOM change the Selic rate at its December 2026 meeting? 25 bps decrease leadsToss-up51%▲ from 26% a week ago

How we got here

  1. The Focus survey reduced its year-end Selic forecast to 13.50% from 13.75%. Reuters
  2. The central bank published its quarterly Monetary Policy Report, providing inflation projections and lower GDP growth forecasts. Usnews, Br
  3. The Focus survey raised the median 2026 inflation forecast to 4.99% from 4.92%. Riotimesonline, Br

What's likely next

  1. Copom’s next scheduled meeting is November 3–4, 2026.

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