São Paulo – The Focus Bulletin, released this Monday (12th) by the Brazilian Central Bank, indicates that the financial market forecasts higher inflation and lower growth than in the last edition, released the previous Monday (5th). According to official news agency Agência Brasil, by the end of 2015 the market is expecting inflation to be 6.6% and the Gross Domestic Product (GDP) to be up 0.4%.
The Focus Bulletin is the Central Bank’s weekly poll of financial institutions in Brazil. In the previous edition, the forecasts were 6.56% inflation and 0.5% GDP growth.
In both last week’s and this week’s forecasts, respondents believe inflation will surpass the top end of the Central Bank’s target range. The target’s midpoint is 4.5% and allows for two percentage points up or down.
The benchmark interest rate (known as Selic) has remained unchanged, as did the US dollar price. Respondents believe that by the end of 2015, the benchmark rate will be 12.5% per annum and the US dollar will be selling for R$ 2.80.
*Translated by Gabriel Pomerancblum
