Brasília – Brazilian banks’ forecast for this year’s national extended consumer price index, Índice Nacional de Preços ao Consumidor Amplo (IPCA), the official measure of inflation, has changed from 7.04% last week to 7.06% in this one. The forecast for 2017 has remained at 5.50%. The numbers are from a weekly poll of financial institutions conducted by the Brazilian Central Bank.
The benchmark interest rate (known as the Selic rate) forecast went from 12.75% to 12.88% per annum at the end of 2015 and from 11.38% to 11.25% per annum at the end of 2017. The current Selic rate is 14.25%.
The GDP shrinkage forecast for this year moved from 3.83% to 3.81%. The estimate for 2017 went from 0.50% to 0.55%. The dollar price forecast dropped from BRL 3.67 to BRL 3.65 for the end of this year and from BRL 3.88 to BRL 3.85 for the end of 2017.
*Translated by Gabriel Pomerancblum
