According to analysts from Goldman Sachs, JPMorgan, and Citigroup, Brazil is the best bet in Latin America.
For the next year, the country has the possibility of experiencing a continuous decline in interest rates.
Brazil’s future interest rates are down due to slowing inflation. Prices are on the decline, according to Bloomberg news agency.
The National Consumer Price Index (IPCA), the country’s leading inflation indicator, fell for the second month in a row in August.
Most economists expect the IPCA to continue to fall, mainly because of the fuel tax cut.
The yield curve in Brazil will fall by more than 2.7 percentage points next year.
This means it will exceed the 11.75 points set by the Central Bank at the beginning of 2021.
Citigroup has advised clients to put interest on Brazilian bonds maturing in January 2025. JPMorgan and Goldman Sachs advocate similar measures.
The specialists of these banks believe it is worth holding on to the above-average allocation in this country, despite the risks related to the presidential elections in October.