Brasília – Brazilian banks’ 2019 inflation estimate slid for the fifth week running. As per the Brazilian Central Bank’s weekly Focus Bulletin, the Extended National Consumer Price Index (IPCA) is seen ending the year up 3.54%, down from a 3.59% forecast as of last week.
The 2020 estimate dropped from 3.85% to 3.82%, and the ones for 2021 and 2022 remained flat at 3.75% and 3.50%.
Benchmark interest is expected to end 2019 at 5% per annum, and 2020 at 5.25%. The 2021 and 2022 forecasts remain at 7% per annum.
Gross Domestic Product (GDP) is seen growing by 0.87% this year. The 2020 projection dropped from 2.10% to 2.07%. caiu de 2,10% para 2,07%. Brazil’s GDP is seen ending 2021 and 2022 at 2.50%, same as last week.
The US dollar is expected to be selling for BRL 3.87 by the end of this year, up from BRL 3.85 last week, and for BRL 3.82 at the end of 2020, up from BRL 3.85 as per last week’s Focus Bulletin.
Translated by Gabriel Pomerancblum
