Brasília – Brazilian financial market players changed down their inflation estimate for this year. The forecast for the Extended National Consumer Price Index (IPCA) moved from 4.15% to 4.12%. The number is from the Focus bulletin, a weekly poll by the Central Bank released this Monday (27).
The inflation rate expected at the end of the year is lower than the midpoint of the Central Bank’s target range, which is 4.5%. The last time inflation hit 4.12% was in 2019. The forecast for 2018 remains at 4.5%.
Economic growth expectancy changed from 0.48% to 0.47% in 2017, and remained at 2.5% for 2018.
The benchmark interest rate is seen by financial market players ending this year at 9% per annum, and 2018 at 8.5%. The rate is currently 12.25%.
*With information from the ANBA Newsroom. Translated by Gabriel Pomerancblum
