Market forecasts Brazil's inflation to close out 2016 at 7.12%
The financial market projections for Brazil's inflation for this year have been revised from 7.06% to 7.12%. For 2017, the forecast has remained at 5.5%. The figures are part of the Focus Market Readout, a weekly report published by the Central Bank.
These projections are above the official inflation target of 4.5%. The upper target range is 6.5% this year and 6% in 2017. The Central Bank is responsible for keeping inflation within the target, using such instruments as the benchmark interest rate (SELIC) to influence the economy.
The market forecast for the SELIC rate at the end of 2016 is 12.88% per annum. By the end of 2017, the rate is expected to stand at 11.25% p.a. Interest currently stands at 14.25% p.a.
The financial institutions have revised their outlook for the Gross Domestic Product (GDP) decline from 3.81% to 3.71% this year. For 2017, the GDP is expected to grow 0.85% (revised from last week's 0.55% forecast).
Translated by Mayra Borges
Fonte: Market forecasts Brazil's inflation to close out 2016 at 7.12%
