Brasília – The inflation estimate from Brazilian financial market players dropped for the sixth straight time this week. The Focus Bulletin released this Monday (3) by the Brazilian Central Bank, shows that the Extended Consumer Price Index (IPCA) is expected to be 3.89% at the end of 2018. Last week’s forecast had been 4.94%. The projection for 2019 moved from 4.12% to 4.11%.
Respondents of the Central Bank poll see the benchmark interest rate (known as Selic) being kept at 6.5% per annum in the last meeting of the Monetary Policy Committee (Copom), which is slated for December 11 and 12. The rate is expected to end 2019 at 7.75%, the same as in last week’s forecast.
The Gross Domestic Product (GDP) growth forecast changed down from 1.39% to 1.32% in 2018, and up from 2.5% to 2.53% regarding 2019.
The US dollar is seen ending this year at BRL 3.75, up from last week’s BRL 3.70 forecast. By the end of 2019, the United States currency is expected to be selling for BRL 3.80, up from BRL 3.78 as of last week’s poll.
Translated by Gabriel Pomerancblum
