Brasília – The forecast of Brazilian banks for this year’s Gross Domestic Product (GDP) has improved. This week’s edition of the Central Bank’s Focus Bulletin includes a projected 3.18% shrinkage, down from 3.20% as of last week. The forecast for 2017 remains at 1.3%.
The forecast for official inflation, which is gauged in the Extended National Consumer Price Index (IPCA), edged up from 7.34% to 7.36%. The 2017 forecast was kept at 5.12%. Both expected rates are higher than the midpoint of the government’s inflation target range, which is 4.5%.
The Brazilian benchmark interest rate (Selic) is seen at 13.75% at the end of 2016 and 11% when 2017 ends. The US dollar price forecast changed from BRL 3.26 to BRL 3.25 at the end of this year, and remained at BRL 3.45 at the end of 2017.
*Translated by Gabriel Pomerancblum
