FX.co ★ Ibovespa Falls on Inflation and GDP Outlook

The Ibovespa slipped more than 0.5% on Tuesday, trading below the 208,000 level, pressured by declines in heavyweight banking, utilities, and mining shares. On the macroeconomic front, the latest Focus survey raised its inflation forecast for 2026 to 5.22%, up from 5.01%, the fourth consecutive upward revision, while the Selic benchmark interest rate was kept at 13.25%. The IMF also trimmed its outlook for Brazil’s economy, cutting its 2026 GDP growth projection to 2.2% from 2.4%. The Fund attributed the expected slowdown between 2026 and 2027 to restrictive monetary policy designed to return inflation to target, the withdrawal of fiscal stimulus, and heightened global uncertainty. Among major banks, Itaú fell nearly 1.5%, and Bradesco retreated about 1%. In the utilities sector, Sabesp declined almost 2%. Mining stocks also weakened, as iron ore prices remained under pressure amid abundant global supply, high inventories in China, and lower shipping costs; Vale dropped close to 1%.