Brasília – The inflation forecast from Brazilian financial institutions eased for the tenth straight time. Poll by the Central Bank with financial market, which is released every Monday, shows that the National Extended Consumer Price Index was down from 3.42%, to 3.28%.
Inflation is expected to end 2020 at 3.78%, down from 3.78%. The 2021 and 2022 estimates remained unchanged at 3.75% and 3.50%.
The benchmark interest rate is expected to be 4.75% per annum by the end of this year. The rate is currently 5.5%. By late 2020, the benchmark rate is expected to be 4.75% from 5.5%. The 2021 forecast 6.5%, the sane as two weeks ago. The 2022 one is 7%, the same as the last 12 weeks.
Gross Domestic Product (GDP) is seen going up 0.87% in 2019 and has been so for six weeks now. Estimates for coming years were unchanged at 2% in 2020 and 2.50% in both 2021 and 2022. Brazilian banks expect the US dollar to be selling for BRL 4, the same as last week poll, and BRL 3.95 by the end of 2020.
Translated by Guilherme Miranda
