Brasília – The Gross Domestic Product (GDP) shrinkage estimate by financial institutions polled by the Brazilian Central Bank remained at 3.70%. The number was released in the weekly Focus Bulletin this Monday (28). For 2016, the forecast changed from 2.80% to 2.81%.
Inflation expectation for 2016, measured by the Extended Consumer Price Index (IPCA), went from 6.87% to 6.86%. The estimate for 2015 went from 10.70% to 10.72%.
The benchmark interest rate, known as the Selic rate, is the principal instrument employed by the Central Bank to keep hiking prices in check. According to the Focus Bulletin, the rate should be 15.25% at the end of 2016.
*Translated by Gabriel Pomerancblum
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