Brasília – The Focus bulletin, issued weekly by the Brazilian Central Bank based on a poll of financial institutions, shows that the economic growth expected this year changed from 0.49% to 0.48%. In 2018, the GDP expansion forecast changed from 2.25% to 2.30%.
The Central Bank poll’s respondents revised down their inflation projection for the sixth straight week. This time, the Extended National Consumer Price Index (IPCA) estimate eased from 4.64% to 4.47%. The IPCA forecast for 2018 has been at 4.5% for 29 weeks now.
The benchmark interest rate is seen ending 2017 at 9.5% per annum and 2018 at 9%. The Selic is currently at 13%. It is one of the Central Bank’s tools for steering economic activity and therefore inflation.
Via Agência Brasil. Translated by Gabriel Pomerancblum