Brazil’s central bank, Roberto Campos Neto, has expressed concern that despite stabilizing statistics, financial markets are still anticipating significant inflation.

The bank has issued a warning about the nation’s growing expectations for inflation, citing global liquidity constraints and high interest rates in advanced economies.

The central bank’s weekly survey of private economists found that they increased their year-end estimates for the Selic benchmark interest rate to 10.25% and raised their estimates of inflation above the stated 3% objective to 3.88% this year, 3.77% in 2025, and 3.60% in 2026.

Campos Neto stated that there is no mechanical relationship between the data and monetary policy in Brazil, and policymakers will focus on how these developments could impact macroeconomic variables.

The next policy meeting, with interest rate futures pricing in a pause in the easing cycle, is scheduled for June 18-19.