Brasília – The whole-year inflation rate expected by Brazilian financial market players dropped for the fourth straight time. A poll made public this Monday (19) by the Brazilian Central Bank shows that the Extended National Consumer Price Index (IPCA) is expected to end the year at 4.13%. Last week’s forecast had been 4.23%.
The 2019 inflation forecast edged down from 4.21% to 4.20%. The estimate for 2020 remained unchanged at 4%, while the one regarding 2021 moved from 3.95% to 3.90%.
The poll’s respondents expect the benchmark interest rate, known as the Selic, to stay at 6.5% until the end of this year. The rate is seen ending 2019 at 8% per annum and remaining so in 2020 and 2021.
Gross Domestic Product (GDP) is expected to grow by 1.36% in 2018 and by 2.50% in the next three years.
The US dollar should be selling for BRL 3.70 at the end of 2018 and for BRL 3.76 at the end of 2019.
Translated by Gabriel Pomerancblum
