Brasília – The inflation forecast from Brazilian financial market players dropped for the third straight time. As per a Central Bank poll released this Monday (12) in Brasília, the Extended Consumer Price Index (IPCA) is seen ending the year at 4.23%, down from a 4.40% forecast as of last week.
The 2019 forecast moved from 4.22% to 4.21%. Estimates regarding 2020 remained unchanged at 4%, and those for 2021 narrowed from 3.97% to 3.95%.
The poll’s respondents expect the benchmark interest rate, aka Selic, to remain at 6.5% through the end of 2018, before climbing throughout 2019 to end the year at 8% per annum. The rate is seen staying level at 8% in 2020 and 2021.
Responding banks see Gross Domestic Product (GDP) growing by 1.36% in 2018, the same as in last week’s poll, and by 2.50% in each of the next three years.
The US dollar is expected to end 2018 at BRL 3.70. The 2019 forecast moved from BRL 3.80 to BRL 3.76.
Translated by Gabriel Pomerancblum
