Brasília – The 2017 inflation forecast from Brazilian financial market players is now lower than the bottom end of the target range pursued by the Brazilian Central Bank. The Extended Consumer Price Index (IPCA) is seen reaching 2.97% at the end of this year, down from a prior forecast of 3.08%, according to the Focus Bulletin, a weekly poll of Brazilian financial institutions.
The Central Bank chases an inflation target ranging from 3% to 6%, whose midpoint is 4.5%. The Bank’s own forecast for this year is 3.2%.
In the Bulletin issued this Monday (25), the benchmark interest rate forecast is kept at 7% in both 2017 and 2018. The Gross Domestic Product (GDP) estimate changed from 0.60% to 0.68% in 2017 and from 2.20% to 2.30% in 2018.
*Translated by Gabriel Pomerancblum
