Brazilian financial analysts surveyed by the Central Bank of Brazil reduced their expectations for the Broad Consumer Price Index in 2017.
In its seventh consecutive reduction, analysts cut their forecasts for the yearly inflation measure to 4.04% from 4.06% the previous week. Gross Domestic Product (GDP) for 2017 was also cut by financial analysts, now estimated to end the year at 0.40% from 0.43% a week earlier.
For 2018, inflation estimates have also been slashed from 4.39% to 4.32% – this is below the Central Bank’s inflation target for the period (4.5%). For 2018 GDP, there was no modification and remains at 2.50%.
Interest rate forecasts
Financial analysts maintained their forecast for the basic interest rate, the Selic, at 8.5% per year at the close of 2017. By the end of 2018, the estimate for the Selic rate continues at 8.5% per year.