Brasília – The Brazilian financial market’s inflation forecast for this year has dropped for the fourth week in a row. The estimate went from 6.72% last week to 6.69% in this one, according to the Focus Bulletin issued this Monday (5) by the Brazilian Central Bank. The 2017 projection remains at 4.9% for three weeks now.
The economic contraction seen by banks responding to the Central Bank poll for this year has widened, from 3.49% to 3.43%. The 2017 growth forecast moved from 0.98% to 0.80%, in the seventh consecutive reduction.
The forecast for the benchmark interest rate, known as Selic, at the end of 2017 dropped from 10.75% to 10.50% per annum. Last week, the Selic was slashed by 0.25 percentage point to 13.75% per annum.
*Translated by Gabriel Pomerancblum
