Inflation projection for Brazil slightly increasedStaff writer ▼ | May 24, 2016
The annual inflation forecast from Brazilian financial institutions has changed up from 7% to 7.04%.
LatAm GDP shrinkage forecast went to 3.83%
The estimates are higher than Central Bank’s inflation target range, whose midpoint is 4.5%, with an upper threshold of 6.5% for this year and 6% for 2017.
Benchmark interest rate Selic is seen at 13% per annum by the end of 2016, up from 12.75% as per the prior forecast. For the end of 2017, the forecast changed from 11.50% to 11.38% per annum. The rate is currently at 14.25%.
The Gross Domestic Product (GDP) shrinkage forecast went from 3.88% to 3.83% this year and was kept at 0.5% for 2017. ■