Brasília – The 2020 inflation forecast from financial institutions polled by the Brazilian Central Bank has eased for the sixth week straight. The National Extended Consumer Price Index (IPCA) – the official measure of inflation in Brazil – is seen ending the year at 3.25%, down from 3.40% in last week’s poll. The figures are released weekly by the Central Bank in its Focus Bulletin, which covers key economic indicators. Inflation is expected to end 2021 at 3.75%, the same as in last week’s forecast. Predictions regarding 2022 and 2023 are also unchanged at 3.50%.
The benchmark interest rate, aka Selic, is seen ending this year at 4.25% per annum; 2021 at 6%; and 2022 and 2023 at 6.5% per annum.
The poll’s respondents expect Gross Domestic Product (GDP) to grow by 2.30% in 2020, and 2.50% per year in 2021, 2022 and 2023. The US dollar is expected to end this year at BRL 4.10. The 2021 forecast changed up from BRL 4.05 to BRL 4.10.
Translated by Gabriel Pomerancblum
