Brasília – The inflation forecast from financial market players for Brazil this year has changed down for the sixth time back-to-back. The Extended National Consumer Price Index (IPCA) is now seen ending the year at 2.95%, down from a prior projection of 2.97%.
The forecast is from the Focus Bulletin, released weekly by the Brazilian Central Bank and containing the results of a poll of financial institutions. The 2018 IPCA projection dropped for the fifth time in a row, this time from 4.08% to 4.06%.
The benchmark interest rate, known as Selic, is seen at 7% per annum at the end of both 2017 and 2018. The rate is currently 8.25%. The Gross Domestic Product (GDP) projection moved up from 0.68% to 0.70% for this year, and from 2.30% to 2.38% in 2018.
*Translated by Gabriel Pomerancblum
