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04/09/2017 - 12:40hs

Projections for economy from banks improve

The inflation estimate dropped and the growth forecast widened, a Brazilian Central Bank bulletin says. Financial market players are expecting prices to be up 3.38% this year with GDP going up 0.5%.

Brasília – Financial market players’ forecasts dropped when it comes to inflation and went up regarding economic growth this year. The Focus bulletin released this Monday (4) on the Brazilian Central Bank website shows the Gross Domestic Product (GDP) growth forecast for this year going from 0.39% to 0.5%. The GDP estimate for 2018 was kept unchanged at 2%.

Central Bank poll respondents’ forecast for the Extended Consumer Price Index (IPCA) slid from 3.45% to 3.38% for this year. The 2018 IPCA prediction moved from 4.20% to 4.18%. Both the 2017 and 2018 estimates fall flat of the 4.50% target range midpoint chased by the monetary authority.

The benchmark interest rate, aka Selic, is seen at 7.25% per annum at the end of this year. The forecast for late 2018 was unmoved at 7.50% per annum.

*Translated by Gabriel Pomerancblum

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