The financial market estimates IPCA inflation below 4.5% and higher cuts to the basic interest rate, the Central Bank of Brazil’s Focus Bulletin disclosed.
With its fourth cut in a row, inflation estimates sent by economists to the Central Bank were cut from 4.12% to 4.10% this year. The target set by the National Monetary Council (CMN) is 4.5%, with a tolerance band of 3% to 6%. The Central Bank of Brazil had not managed to hit its inflation target since 2009. For 2018, analysts did not revise the previous projection, and the forecast remains at 4.5%.