Brasília – Financial institutions revised down, for the fifth consecutive time, their estimations for the inflation rate for this year, as measured by the Extended National Consumer Price Index (IPCA), going from 7.28% to 7.14%. For 2017, the forecast declined from 6% to 5.95%, again remaining below the target center. The data is from the Focus Bulletin, a survey done by the BC with the financial market.
The forecast by financial institutions for the economy’s downturn this year was changed by the tenth consecutive time, going from 3.73% to 3.77%. For 2017, the estimation for the economy’s growth remained at 0.30%.
In this downturn period, the financial institutions expect the BC to reduce the benchmark interest rate, the Selic, this year. The forecast for interest rates at the end of 2016 remains at 13.75%. Currently, the Selic is at 14.25% per year. For the end of 2017, the estimation calls for 12.25% interest rates.
*Translated by Sérgio Kakitani
