Brasília – The inflation forecast from Brazilian financial institutions eased for the eighth straight time. Banks polled by the Central Bank show that the National Extended Consumer Price Index is seen ending the year at 3.43%, down from a prior 3.44% projection. Inflation is expected to end 2020 at 3.79%, down from last week’s 3.80% forecast. The 2021 and 2022 estimates remained unchanged at 3.75% and 3.50%.
The benchmark interest rate is expected to be 4.75% per annum by the end of this year, down from 5% as per last week’s poll. The rate is currently 5.5%. By late 2020, the benchmark rate is expected to be 5%. The 2021 forecast moved from 6.75% to 6.50%, and the 2022 one is 7%, the same as last week.
Gross Domestic Product (GDP) is seen going up 0.87% and has been so for four weeks now. Estimates for coming years were unchanged at 2% in 2020 and 2.50% in both 2021 and 2022. Brazilian banks expect the US dollar to be selling for BRL 4 by the end of this year, up from BRL 395 in last week poll, and for BRL 3.91 by the end of 2020, up from BRL 3.90 as of last week’s poll.
Translated by Gabriel Pomerancblum