Brasília – After sliding for eleven weeks running, financial market players polled by the Central Bank of Brazil (BC) increased their inflation estimate this year. The Extended National Consumer Price Index (IPCA) is seen ending the year up 3.29%, up from a 3.26%, as per the Central Bank of Brazil’s weekly Focus Readout.
The 2020 estimate dropped from 3.66% to 3.60%, its fifth slide running. The estimates for the following years remained flat: 3.75% in 2021 and 3.50% in 2022.
As per the financial market players, benchmark interest is expected to end 2019 at 4.5% per annum. Now it’s at 5.5%. The 2020 estimate is that it remains unchanged. The 2021 and 2022 forecasts are 6.38% and 6.5%.
Gross Domestic Product (GDP) is seen growing by 0.91% this year, up from 0.88%. The following years’ projections remained unchanged: 2% in 2020, and 2.50% in 2021 and 2022. The US dollar is expected to be selling for BRL 4 by the end of this, as per the Focus Readout.
Translated by Guilherme Miranda