Financial market forecasts 7.59% inflation in 2016
Analysts and investors once again raised the inflation estimated by the National Broad Consumer Price Index (IPCA). The new forecast is a 7.59% surge in 2016, compared to a previous 7.57%.
The forecast is far from the middle (4.5%) and the ceiling (6.5%) of the target set by the government for this year. For 2017, the estimate was kept at 6%.
The data come from the Focus Market Readout, a weekly publication published on Mondays by the Central Bank, and are based on forecasts from financial institutions for the main economic indicators.
Despite the high estimate for the inflation, the forecast for the SELIC benchmark interest rate remains at 14.25% per annum for 2016. For 2017, in turn, the rate is expected to fall to 12.50% according to the financial market, which also predicts the exchange rate for December to reach R$ 4.30.
Economy
The projection made by financial institutions for the economy deteriorated yet again this year, going from 3.45% to 3.50%. For 2017, the estimated growth for the GDP was preserved at 0.50%. The reduction forecast in industrial production was maintained at 4.50% in 2016.
Translated by Fabrício Ferreira
Fonte: Financial market forecasts 7.59% inflation in 2016
