Brasília – The forecast by financial institutions for this year’s inflation rate was revised up for the fourth straight time. According to a survey by the Brazilian Central Bank (BC) released this Monday (08), the Extended National Consumer Price Index (IPCA) is expected to reach 4.40%. Last week, the forecast pointed to an inflation rate of 4.30%.
For 2019, the market is expecting an inflation rate of 4.20%. For 2020, it remains in 4% and, for 2021, it went from 3.97% to 3.95%.
According to the financial market, the Selic, the benchmark interest rates, should remain at 6.5% this year – the current rate – until the end of 2018. For 2019, the market expects it to be raised, ending the year at 8% per year. For the end of 2020, the forecast points to interest rates of 8.38% per year, falling back to 8% per year at the end of 2021.
The market also revised down its forecast for the Growth Domestic Product (GDP), from 1.35% to 1.34%, for this year. The forecast for the next three years remained at a 2.5% GDP growth.
The market’s forecast for the dollar remained at BRL 3.89 at the end of this year, and at BRL 3.83 at the end of 2019.
Translated by Sérgio Kakitani
