Brazil IFI raises neutral rate estimate, sees debt at 124% of GDP by 2036

Brazil's Independent Fiscal Institution (IFI) raised its real neutral interest rate assumption by 1.1 percentage points to 6.1%, projecting gross public debt to reach 124% of GDP by 2036, up from 115% in the previous scenario. The revision signals higher structural borrowing costs, which could pressure fiscal sustainability and market sentiment.

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