USD/BRL to trade at 5.15 by end-2021 and at 5.20 by end-2022 – Rabobank

Economists at Rabobank take the opportunity to update their complete set of macroeconomic forecasts for Brazil. They still expect USD/BRL to hover around  5.15 by year-end and 5.20 by end-2022.

Central Bank of Brazil expectedly hawkish

“We still see the USD/BRL at 5.15 by end-2021 and 5.20 by end-2022.” 

“We now think CPI inflation will be 6.5% in 2021 and 3.5% in 2022%, but remain watchful for inflation risks.”

“We believe the BCB will likely hike the Selic rate until 7.00% in 2021 and sit on their hands in 2022.”

“We think the GDP growth will be 5.0% in 2021 and 2.0% in 2022.”