We revised our exchange rate projection for 2024 to R$5.40, and the IPCA is expected to rise this year and next – 06/28
The more constructive bias for the exchange rate, stemming from the robustness of external accounts, lost momentum in the second quarter of the year. Without prospects for structural improvements and amidst a weakened political and fiscal scenario, we believe the real will end the year at R$5.40, appreciating to R$5.30 in 2025. On the inflation side, incorporating the exchange rate pass-through, we raised our IPCA projection for 2024 from 3.8% to 4.1% and for 2025 from 3.5% to 3.7%.
For more information, please check our Weekly Report 70.
