In brief

The Focus keeps lowering 2026 inflationInflationMacroChange in the price level, tracked in Brazil primarily through the IPCA index.Open in the Market Map ↗ one hundredth at a time, without moving the Selic.

The read is of a market expecting the Copom to hold the rate and save cuts for after the election, with oil near US$ 100 as a new risk.

What we know

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  1. Verified fact · material

    The September 8 Focus survey median for 2026 IPCAInflationMacroChange in the price level, tracked in Brazil primarily through the IPCA index.Open in the Market Map ↗ fell from 5.01% to 5%, a second straight weekly cut, still above the 4.5% target ceiling, and the 2027 median rose from 4.28% to 4.29%, per Agência Brasil, InfoMoney and Exame.

    It is the figure anchoring expectations before the Copom.

  2. Verified fact · material

    The Selic median stayed at 13.75% a year for end-2026 and 12% for end-2027, the latter for the 12th consecutive week, per Agência Brasil and InfoMoney.

    Shows the market does not anticipate a cut before the election.

    Sources[01][02]
  3. Verified fact

    The 2026 GDP forecast rose from 1.92% to 1.93% and 2027 stayed at 1.5%; the projected exchange rate stayed at R$ 5.20 for end-2026 and R$ 5.30 for 2027, per Agência Brasil and Money Times.

    Completes the forecast picture.

    Sources[01][04]
  4. Verified fact

    The survey was released on Tuesday because of the September 7 holiday, and the Copom meets on September 15-16, per Agência Brasil.

    Places the data in the calendar.

    Sources[01]

Transmission to assets

Market read-through

75%, the ex-ante real rate stays near 8%, which supports BofA's thesis of deep cuts in 2027 and explains the drop in long DIs.

The short-term risk is oil: Brent at US$ 100 may halt the run of downward revisions.

Portfolio impact

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Curva de jurosmixed

Falling projected inflationInflationMacroChange in the price level, tracked in Brazil primarily through the IPCA index.Open in the Market Map ↗ with a stable Selic widens the real rate and expectations of 2027 cuts.

Neutral for the short end, positive for the long end.

What would change the view: Changes if the Copom signals earlier cuts or if oil feeds into IPCAInflationMacroChange in the price level, tracked in Brazil primarily through the IPCA index.Open in the Market Map ↗.

rates50% confidence
NTN-B e prefixadospositive

Falling inflationInflationMacroChange in the price level, tracked in Brazil primarily through the IPCA index.Open in the Market Map ↗ expectations favour fixed-rate over inflationInflationMacroChange in the price level, tracked in Brazil primarily through the IPCA index.Open in the Market Map ↗-linked bonds.

Positive for fixed-rate bonds.

What would change the view: Depends on current IPCAInflationMacroChange in the price level, tracked in Brazil primarily through the IPCA index.Open in the Market Map ↗ confirming the trend.

macro40% confidence

Direction is an explanatory hypothesis, not a forecast or recommendation.

Next signals

What to watch

  • The Copom decision and statement on 9/16.
  • August IPCAInflationMacroChange in the price level, tracked in Brazil primarily through the IPCA index.Open in the Market Map ↗ and September IPCAInflationMacroChange in the price level, tracked in Brazil primarily through the IPCA index.Open in the Market Map ↗-15.
  • The next Focus on 9/14.

Limits of the reporting

What remains uncertain

  • The Focus is a median of private forecasts, not official inflationInflationMacroChange in the price level, tracked in Brazil primarily through the IPCA index.Open in the Market Map ↗ data.

Full sources

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