Brasília – Brazilian banks have revised down their inflation forecast for this year. The estimate for the Extended National Consumer Price Index (IPCA) changed from 4.36% to 4.19% as per the Focus Bulletin, a weekly poll conducted by the Central Bank and issued every Monday. The forecast for 2018 remained unchanged at 4.5%.
The Gross Domestic Product (GDP) estimate for this year moved from 0.49% to 0.48%, with the projection for next year going from 2.39% to 2.40%. The benchmark interest rate forecast from the poll’s respondents slid from 9.25% to 9% per annum at the end of 2017. The forecast for the end of 2018 changed from 9% to 8.75% per annum.
*Translated by Gabriel Pomerancblum