What does 2025 hold in store for Brazil’s economy?

Brazil’s recent period of rapid growth is likely to come an end this year. Sovereign debt concerns will almost certainly rumble on, but further piecemeal austerity measures will probably prevent another rise in bond yields or leg down for the real. In a similar vein, while further hikes to interest rates are on the cards, we think other analysts and the market may have got ahead of themselves about the scale of monetary tightening on the cards.