Private sector economists in Brazil expect the country's central bank to keep interest rates on hold at 10.50% until the end of this year, a weekly central bank poll showed on Monday. Economists also raised their expectations for inflation in Latin America's largest economy this year and the next, while slightly reducing their 2024 gross domestic product (GDP) growth forecast.

The rate-setting committee of Brazil's central bank will meet later this week and the market widely expects it to pause its monetary easing cycle amid increased volatility in domestic financial markets and unanchored inflation expectations. The following is a set of projections from the survey: Market estimates 2024 2024 2025 2025 Median Now Previous Now Previous week week IPCA inflation index 3.96 3.90 3.80 3.78 (%) GDP growth (%) 2.08 2.09 2.00 2.00 Brazilian real to U.S. 5.13 5.05 5.10 5.09 dollar (year-end) Interest rate Selic 10.50 10.25 9.50 9.25 (year-end, %) (Reporting by Camila Moreira; Editing by Gabriel Araujo)