LatinNews Daily - 11 July 2023

* Brazil’s central bank (BCB) has released the latest edition of its Focus bulletin, a weekly survey of private sector economists and analysts, which forecasts that annual inflation will close 2023 at 4.95%. This latest forecast is slightly down from the 4.98% predicted in the previous week’s bulletin and from the 5.42% forecast the previous month. This week’s bulletin also maintained its prediction from last week that Brazil’s benchmark interest rate (Selic) – currently set at 13.75% – would be lowered to 12% by the end of this year. The BCB’s annual inflation target for 2023 is 3.25% +/- 1.5. The continued revising down by experts of their inflation forecasts is likely to fuel calls from the government and some business groups to lower the Selic in the coming weeks or months, particularly if the forecasts enter the target range.