Brasília – The inflation forecast for this year from Brazilian financial market players slid for the seventh week back-to-back. The Extended National Consumer Price Index (IPCA, in the Portuguese acronym) is now seen at 3.63%, down from 3.67%, as per the Brazilian Central Bank’s Focus Bulletin, containing the results of a poll covering key economic indicators.
The benchmark interest rate, known as Selic, is seen ending 2018 at 6.50% per annum and going up throughout 2019 to end the year at 8%. The Central Bank poll’s respondents see the Monetary Policy Committee cutting the Selic by 0.25 percentage point at this month’s meeting. The current rate is 6.75%.
The Gross Domestic Product (GDP) growth forecast slid for the second straight week, this time from 2.87% to 2.83%. In 2019, GDP is seen going up 3%.
*Translated by Gabriel Pomerancblum
