Brasília – The financial market is expecting the inflation rate to be close to the upper limit of this year’s target range. According to a weekly survey conducted by the Brazilian Central Bank (BC), the forecast for the Extended National Consumer Price Index (IPCA) was revised down from 6.69% to 6.52%. The upper limit of the inflation target range is 6.50% with the center set at 4.5%. This is the fifth consecutive time that the forecast is revised down.
For 2017, the inflation rate was revised down from 4.93% to 4.90%, according to the survey, which is made public every Monday in Brasília. The inflation target for next year is 4.5%, with an upper limit of 6%.
For the financial institutions, Selic, the benchmark interest rate, will end 2017 at 10.50% per year. Currently, the Selic is at 13.75% per year.
The forecast by financial institutions for the economy’s decline worsened, going from 3.43% to 3.48%. For 2017, the growth estimate was revised down from 0.80% to 0.70% for the eighth consecutive time.
*Translated by Sérgio Kakitani
