LatinNews Daily - 13 October 2026

*The International Monetary Fund (IMF) has released the latest edition of its World Economic Outlook (WEO) report, which put Brazil’s annual growth forecast at 2.2% for 2026 and 1.9% for 2027. The 2026 growth projection is down 0.2 percentage points compared to the forecast for Brazil in the July edition of the WEO, while the 2027 forecast is down 0.3 percentage points. The projection of 2.2% for 2026 is slightly lower than the 2.3% regional average forecast for Latin American and the Caribbean, and the 2027 forecast of 1.9% for Brazil is also lower than the 2.5% regional average forecast. In the latest WEO, the IMF highlighted that “growth in Brazil is expected to slow somewhat from 2.2 percent in 2026 to 1.9 percent in 2027, reflecting still-restrictive monetary conditions”.  Indeed, Brazil’s benchmark interest rate (Selic) remains at double-digit levels, despite rate cuts in recent months. During the last interest rate meeting of the central bank (BCB) in mid-September, the Selic was lowered by 25 basis points to 13.75%. Private sector economists surveyed by the BCB are expecting another 25-basis-point cut in 2026 and are projecting the Selic to be lowered to 12.0% by the end of 2027. However, the BCB’s monetary policy committee has not given a clear indication of whether it will make another rate cut in its November meeting.

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