Brazilian market raises inflation forecast for 2022 after 17 consecutive weeks of reduction

The Brazilian financial market raised its inflation forecast for this year to 5.61%, the first increase after 17 weeks of lowering its estimates, the Central Bank of Brazil reported on October 31.

According to the Focus Bulletin, released every Monday by the issuing entity after interviewing a hundred economists and financial market analysts, the forecast for prices this year in Brazil rose from 5.60% to 5.61%, while for 2023, it remained at 4.94%, estimated last week.

For this year, the Central Bank set an inflation target of 3.5%, with a tolerance margin of 1.5 percentage points, allowing the index to be between 2% and 5%.

Meanwhile, the financial market’s forecast for the gross domestic product (GDP) for this year remained at 2.76%, while for 2023, it rose for the fifth week in a row to 0.64%.

The financial market also calculated that the basic interest rate, currently at 13.75%, will be maintained until the end of the year, while for 2023, it was placed at 11.25%.

The exchange rate of the Brazilian real to the dollar was maintained at R$5.20 to the dollar for both 2022 and 2023.

With information from Xinhua

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