BRASILIA, April 22 (Xinhua) -- Brazil's financial market lowered its inflation forecast for 2025 from 5.65 percent to 5.57 percent and maintained its projection for 2026 at 4.50 percent, the Central Bank of Brazil said Tuesday.

According to the bank's weekly Focus survey of leading financial institutions in the South American country, the decrease in inflation expectations proves that the monetary adjustment policy being implemented is beginning to take effect.

Since last August, the central bank has raised the benchmark interest rate five consecutive times, from 10.50 percent to 14.25 percent annually.

Market analysts expect the benchmark interest rate to end the year at 15 percent, and to be at 12.50 percent at the end of 2026.

Regarding Brazil's economic growth, analysts upgraded their 2025 forecast from 1.98 percent to 2 percent and for 2026, from 1.61 percent to 1.70 percent.

Analysts expect the Brazilian currency, currently trading at an average of 5.85 reals to the U.S. dollar, to reach 5.90 reals to the dollar by the end of 2025 and 5.96 reals to the dollar by the end of 2026.

Regarding trade balance (exports versus imports), the financial market expects a surplus of 75 billion U.S. dollars in 2025 and 79.3 billion dollars in 2026.

The forecast for foreign direct investment in Brazil remained at 70 billion dollars for both 2025 and 2026. ■