A Morgan Stanley Brazil report warns against policy complacency before October's elections, sketching a bear case of a weaker currency and 18% long rates.

Brazil's Focus survey cuts 2026 GDP forecast to 1.95% while inflation stays at 5.02%. Foreign outflows and fiscal strains weigh on the outlook.

Banco avalia que há pouco espaço para “complacência” com a continuidade da política econômica atual