Brasília – The Brazilian financial market has once again revised down its 2016 inflation forecast. Analysts expect the Extended Consumer Price Index (IPCA) to end the year at 7.34% – the previous estimate had been 7.36%. The forecast for 2017 was kept at 5.12%. The forecasts are from the Focus Bulletin made public this Monday (19) by the Brazilian Central Bank.
The benchmark interest rate is seen at 13.75% at the end of 2016, and at 11% on the last day of 2017.
The Gross Domestic Product (GDP) is now seen shrinking 3.16%, down from 3.18% as of the prior estimate, and growing 1.36% in 2017, up from 1.30% in the last poll.
The US dollar is expected to amount to BRL 30.30 at the end of 2016, up from BRL 3.25. The 2017 forecast remains at BRL 3.45.
*Translated by Gabriel Pomerancblum
