Financial market analysts have increased expectations of this year’s inflation target being exceeded, which now reaches 4.62% according to the Focus Report released this Monday (11). The estimate, made by the Central Bank with analysts, shows a worsening perception of public accounts.
Last week, the market was already projecting an overshoot of the target ceiling of 4.5%. With this Monday’s estimate (11), the expectation is that the government will be under more pressure to close an agreement for the promised spending cut that has been going on for three weeks.
The president (PT) met in the afternoon with the minister (Finance), outside the official agenda, to close the deal – in a direct clash with the economic team. However, there is no announcement date yet.
SEE ALSO:
-
PT splits government by signing manifesto against spending cuts
In addition to this year’s inflation, the financial market is also seeing an impact in 2025, from 4.03% to 4.1%, and for 2026, from 3.61% to 3.65%.
On the other hand, the expectation for economic growth this year – calculated by GDP (Gross Domestic Product, the sum of all services and goods produced by the country) remained stable at 3.1% for the end of this year. For next year, it increased from 1.93% to 1.94%.
Among other estimates, the expectation for the basic interest rate remains at 10.75% per year, and the dollar exchange rate has increased from R$5.50 to R$5.55 this year.
Worse expectations for the Brazilian economy are gradually increasing as a result of the government’s delay in announcing where it will cut spending. Lula tries to arbitrate the differences between the social ministers and the economic team, and in .
This split worsened this Monday (11) with the release of a manifesto signed by the PT and other parties and social movements against the package, in addition to the .
She stated that the cut is a “sacrifice for retirees, workers, health and education, which may even match the frenetic neoliberalism of the past government, but not with the government that was elected to rebuild the country”.
