According to CoinMeta, with Brazilian President Lula's successful re-election, the market expects high levels of public spending to exacerbate inflationary pressures. For the second consecutive week, Brazilian economists have raised their forecasts for interest rates at the end of 2026. A weekly survey of economists released by the Central Bank of Brazil on Monday showed that the benchmark interest rate selic is expected to reach 13.75% next month, higher than the previous forecast of 13.5%. Analysts have also raised their inflation forecasts for the end of next year from 4.76% to 4.9%, which is significantly higher than the target level of 3%. Lula's unexpected re-election last month shattered investors' expectations of a change in policy direction for Latin America's largest economy, leading to a significant decline in assets such as the Brazilian real and the stock market. Last week, after several months of interest rate cuts, the Central Bank of Brazil paused its monetary easing cycle, maintaining the benchmark interest rate selic at 13.75% unchanged, while warning of a tough economic outlook facing challenges such as slowing growth, accelerating inflation, and high uncertainty.