Brasília – The financial market has revised down its projection for Brazil’s economic growth once again. From the 0.27% estimated last week, it returned to 0.24%, as seen in previous weeks. The projection is part of the Focus Bulletin issued this Monday (3rd) by the Brazilian Central Bank (BC). Analysts and investors have also raised the US dollar price projection for the end of 2014, from R$ 2.40 to R$ 2.45.
The estimated inflation rate was maintained at 6.45%, as per the Broad Consumer Price Index (IPCA, in the Portuguese acronym). Government-influenced prices should be revised by 5.15% in the period.
Even though the BC’s Monetary Policy Committee (Copom) increased the benchmark interest rate (aka Selic) to 11.25% per annum in its last meeting, the Focus Bulletin’s estimated Selic rate by the end of the year has remained at 11%. For the end of 2015, however, the projection for the benchmark rate was changed from 11.5% to 12%.
The trade surplus should decline from US$ 2.10 billion to US$ 2 billion. Foreign direct investment (FDI) targeting Brazil should remain at US$ 60 billion.
*Translated by Rodrigo Mendonça
