Inflation and public finances could limit Brazil’s rate cuts in 2027

Brazil’s inflation rose 0.82% in September, more than economists had expected.

Inflation over the past 12 months reached 4.58%, above the 4.5% tolerance ceiling.

That could make it harder for the central bank to keep cutting interest rates, especially in 2027.

Analysts say lower rates will also depend on the government improving the country’s public finances.