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02/10/2017 - 12:50hs

Banks revise down inflation estimate

The Extended National Consumer Price Index (IPCA) forecast for this year from financial institutions polled by the Brazilian Central Bank changed down from 2.97% to 2.95%.

Brasília – The inflation forecast from financial market players for Brazil this year has changed down for the sixth time back-to-back. The Extended National Consumer Price Index (IPCA) is now seen ending the year at 2.95%, down from a prior projection of 2.97%.

The forecast is from the Focus Bulletin, released weekly by the Brazilian Central Bank and containing the results of a poll of financial institutions. The 2018 IPCA projection dropped for the fifth time in a row, this time from 4.08% to 4.06%.

The benchmark interest rate, known as Selic, is seen at 7% per annum at the end of both 2017 and 2018. The rate is currently 8.25%. The Gross Domestic Product (GDP) projection moved up from 0.68% to 0.70% for this year, and from 2.30% to 2.38% in 2018.

*Translated by Gabriel Pomerancblum

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