Financial market expects 7.43% inflation this year
Financial market analysts and investors have lowered the inflation forecast for the second straight week today (Mar. 21). The new outlook for inflation, which is gauged by the Broad National Consumer Price Index (IPCA), is 7.43%, down from a previous 7.46%.
For 2017, the estimate continues below 6%, according to the Focus Market Readout, a weekly report published by the Central Bank (BC) on Mondays, based on projections from financial institutions for the main economic indicators.
The forecasts are still far from the 4.5% target and 6.5% ceiling set by the government for this year's inflation.
The forecast for the benchmark interest rate, the SELIC, remains at 14.25% per annum in 2016 and 12.5% p.a. for 2017. The dollar exchange rate expected for December is R$4.20.
GDP
The projected decline of Brazil's economy as forecast by financial analysts has worsened again, going from 3.54% to 3.60% for this year. In 2017, the Gross Domestic Product (GDP) is expected to grow 0.44%, down from a previous forecast of 0.50%.
Translated by Mayra Borges
Fonte: Financial market expects 7.43% inflation this year
