Brasília – Estimates from financial institutions regarding inflation in Brazil this year have gone up for the fifth straight time. A poll made public this Monday (15) by the Brazilian Central Bank shows that the Extended National Consumer Price Index (IPCA) is seen ending the year at 4.43%, up from a 4.40% forecast as of last week.
The forecast for 2019 moved up from 4.20% to 4.21%. The 2020 forecast remains at 4%, and the one regarding 2021 changed from 3.95% to 3.92%.
Banks responding to the Central Bank poll see the benchmark interest rate (Selic) remaining at 6.5% per annum through the end of 2018.
The benchmark rate is expected to be 8% per annum at the end of 2019, 8.38% at the end of 2020 and 8% at the end of 2021.
Gross Domestic Product (GDP) growth expected by the Central Bank poll’s respondents remained at 1.34% for this year, and at 2.5% in each of the next three years.
Translated by Gabriel Pomerancblum
