Brasília – Financial institutions polled by the Brazilian Central Bank (BC) expect the official inflation rate, as measured by the Extended National Consumer Price Index (IPCA), to reach 4.44% at the end of the year. Last week, their forecast pointed to a 4,43% inflation rate. It was the sixth straight time they have revised up their inflation forecast.
For 2019, the inflation forecast was also revised up, from 4.21% to 4.22%. For 2020, it remains at 4% and, for 2021, it was revised down from 3.92% to 3.78%.
According to the financial market, the benchmark interest rates, the SELIC, should remain at 6.5% at the end of 2018. For 2019, the market expects it to go up, ending the year at 8% per year. For 2020, the forecast remains at 8.25% per year, going down to 8% at the end of 2021.
Financial institutions kept their forecast for the growth of the Gross Domestic Product (GDP) in 1.34% this year, and revised down their estimate for 2019, from 2.50% to 2.49%. For 2020 and 2021, banks kept their estimate of 2.50%.
Translated by Sérgio Kakitani
