Brasília – The forecast for the decline of the Gross Domestic Product (GDP) this year remains at 3.48% but the one for next year worsened, from 0.70% to 0.58%, as per the survey conducted weekly by the Brazilian Central Bank (BC) with financial institutions. It was the ninth consecutive reduction.
Meanwhile, the inflation forecast stood within this year’s target. Banks expect the Extended National Consumer Price Index (IPCA) to be at 6.49% this year, against the 6.52% forecast made last week. The inflation target center is 4.50% with the upper limit set at 6.50%. The forecast for the inflation rate declined for the sixth consecutive time. For 2017, the forecast for the IPCA remains at 4.90%. Next year’s inflation target is set at 4.5%, with an upper limit of 6%.
The financial institutions believe that the benchmark interest rate will end 2017 at 10.50% per year. Currently, it stands at 13.75%.
*Translated by Sérgio Kakitani
