BofA has revised its GDP and inflation forecasts for Brazil for 2025-2026.

Bank of America (BofA) has updated its economic forecasts for Brazil due to downward revisions in growth estimates for the United States. This signals a more cautious outlook as BofA analysts revise Brazil's growth and inflation projections. Following the government's proposal of income tax reform that includes compensatory measures to Congress, short-term uncertainties are believed to have diminished.

The bank noted a slowdown in economic activity and has adjusted its inflation forecast upwards for the coming years. Inflation is expected to rise from a previous estimate of 5.1% to 5.4% in 2025, and from 4.2% to 4.5% in 2026. This adjustment reflects the impact of currency depreciation and robust growth. Meanwhile, BofA has revised its policy interest rate forecasts, expecting only one additional 50 basis points increase, raising the Selic rate to 14.75%.