Brasília – Financial institutions expect the Extended Consumer Price Index (IPCA) – the official measure of inflation in the country – to be 4.11% at the end of the year. The information was made public in the Brazilian Central Bank’s weekly Focus Bulletin, whose forecasts cover key economic indicators.
Banks see the IPCA ending 2019 at 4.10%, the same as they have for the past seven weeks; 4% in 2020; and 3.93% in 2021.
The benchmark interest rate, known as the Selic, is seen remaining at 6.5% per annum through the end of 2018, and then climbing to 8% in 2019, and remaining so in 2020 and 2021.
Gross Domestic Product (GDP) is expected to grow by 1.5%. The 2019 GDP forecast has been 2.5% for five weeks now. Banks see GDP going up 2.5% in 2020 and 2021.
The US dollar price forecast is BRL 3.7 at the end of this year and the next. The price is seen dropping to BRL 3.69 in 2020 and going up to BRL 3.75 in 2021.
Translated by Gabriel Pomerancblum
