RIO DE JANEIRO: Brazil analysts have lowered their 2024 benchmark interest rate projections after the central bank reaffirms plans to maintain its pace of monetary easing for the coming months.

       The Selic will fall to 9% by December 2024, down from the prior estimate of 9.25%, according to a weekly central bank economist survey published.

       Borrowing costs will fall to 8.5% by the end of 2025, the survey showed.

       Policymakers led by Roberto Campos Neto lowered rates to 11.75% this month and pledged more half-point cuts well into next year.

       Headline inflation is slowing, and measures of consumer price growth that exclude volatile items like energy and food are cooling down.

       Board members also trimmed their 2024 economic growth forecasts as strong consumption wanes.

       The central bank has now cut the Selic by two percentage points since August.

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       Still, estimates for medium-term inflation remain above the bank’s 3% goal for 2024, with analysts seeing price increases at 3.91% next year.

       In their quarterly inflation report released on Dec 21, policymakers trimmed their 2024 economic growth forecast to 1.7% from 1.8%.

       They see a moderation in agriculture and consumption, and said family income will take a hit as the twin boost of lower food prices and higher government spending loses force.

       Brazil’s financial outlook remains uncertain as Finance Minister Fernando Haddad negotiates with Congress for a series of bills that would increase revenue to fund President Luiz Inacio Lula da Silva’s social and infrastructure programmes. — Bloomberg