Brazil market forecast for 2023 inflation rate adjusted to 4.84%
Financial market participants have lowered the inflation expectation for 2023 to 4.84%, according to the Focus Bulletin by the Central Bank, released on Monday morning (31st).
This marks the second consecutive week of decrease following a brief interruption in an eight-week downtrend.
This week’s expectation is 0.14 percentage point lower than a month ago, and it indicates a downward trend for the coming year (read in full). For 2024, analysts predict an inflation rate of 3.89%.
This week’s Focus also reveals a new downward revision for the dollar exchange rate, which is now projected to end the year at R$4.91, six cents less than last week’s forecast.
Meanwhile, the GDP (Gross Domestic Product) growth forecast remains steady at 2.24%, as does the basic interest rate at 12%.
The Monetary Policy Committee (Copom) is set to meet starting on Tuesday to discuss the direction of the Selic rate, with an initial expectation of a 0.50 percentage point reduction.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief