Brasília – Analysts from the financial market are expecting more inflation and an economy decline this year. According to a survey done by the Brazilian Central Bank (BC) with financial institutions, the inflation projection, as measured by the Extended National Consumer Price Index (IPCA), went up from 8.39% to 8.46% this year. This estimation stood higher than the previous one for the eighth straight week. For 2016, estimation remains at 5.50%.
The expectation of the market’s analysts for an economy decline went from 1.27% to 1.30%. This is the third straight time that the estimation for the Gross Domestic Product (GDP) got worse. Next year, the estimation is for an economy recovery, with a 1% growth.
Even with a weak economy, financial institutions are expecting another raise in the benchmark interest rate, the Selic, for inflation control. Last Wednesday (3rd), the Monetary Policy Committee (Copom) from Copom raised the Selic for the fourth straight time to 13.75% per year. For the financial institutions, the Selic will end 2015 at 14% per year. The estimation for a trade surplus (the positive rate of exports over imports) went up from US$ 3 billion to US$ 3.1 billion.
*Translated by Sérgio Kakitani
