Brasília – The forecast for the inflation rate this year in Brazil, made by financial institutions, was revised up for the third straight time. According to a survey by the Brazilian Central Bank (BC), with the forecasts produced shown this Monday (01), the Extended National Consumer Price Index (IPCA) is expected to end the year at 4.3%. Last week’s forecast pointed to a 4.28% inflation rate.
For 2019, the forecast for the inflation rate was also revised up. It went from 4.18% to 4.20%. It was the second straight increase. For 2020, the forecast remains at 4% and, for 2021, at 3.97%.
According to the financial market, the benchmark interest rates, the Selic, should remain at 6.5% per year until the end of 2018. For 2019, the market expects it to go up, ending the year at 8% per year. For the end of 2020, the forecast points to 8.19% per year, and returning to 8% per year at the end of 2021.
The forecast by financial institutions for this year’s Growth Domestic Product (GDP) stands at 1.35% this year and 2.5% in the next three years. The market’s expectation for the dollar value went from BRL 3.90 to BRL 3.89 at the end of this year, and from BRL 3.80 to BRL 3.83 at the end of 2019.
Translated by Sérgio Kakitani
