Brazilian banks revise up inflation forecastStaff writer ▼ | February 16, 2016
The inflation forecast from financial institutions for this year has changed up for the seventh straight time.
Brazil The Extended Consumer Price Index is 7.61% now
Despite the high inflation, financial institutions do not believe the Central Bank will raise the Selic benchmark interest rate amid a year of slumping economy. For two weeks now, the forecast for the end of 2016 has remained at 14.25% per annum.
Banks are expecting the Gross Domestic Product (GDP) to shrink 3.33% this year, the fourth consecutive downward revision.
The previous estimate had been 3.21%. In 2017, the poll’s respondents believe the economy should bounce bank, but by a lessening rate. In the fourth straight revision, the growth estimate for next year edged down from 0.60% to 0.59%.
The dollar price forecast for the end of 2016 changed from BRL 4.35 to BRL 4.38, and was kept at BRL 4.40 for the end of 2017. ■