Bank of America Downgrades Brazil Stocks Amid High Interest Rate Outlook

June 10, 2026 Priya Shah – Business Editor Business






Bank of America Downgrades Brazil to Neutral as Selic Forecast Climbs to 14.25%—What It Means for Investors and Local Firms


Bank of America lowered its recommendation for Brazilian equities to “neutral” on June 10, 2026, citing an upward revision to its Selic rate forecast—now projecting 14.25% by December 2026, up from 13.5% in prior estimates. The move reflects persistent inflationary pressures and a delayed monetary tightening cycle, forcing local corporates to reassess debt structures and FX exposure. For multinational firms operating in Brazil, this signals a prolonged high-rate environment that will strain EBITDA margins and accelerate demand for liquidity management tools.

Why Did BofA Revise the Selic Forecast Upward—and What Does It Mean for Local Markets?

Why Did BofA Revise the Selic Forecast Upward—and What Does It Mean for Local Markets?

Bank of America’s adjustment stems from two key factors: persistent core inflation hovering near 4.8% (above the 3.0% target) and the Central Bank’s

Baird downgrades Bank of America
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