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Brazilian market raises 2020 inflation forecast to 3.54 pct

Xinhua News,BRASILIA
2020-12-01 07:56

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BRASILIA, Nov. 30 (Xinhua) -- Brazil's financial market analysts raised their inflation forecast for 2020 for the 16th consecutive time, from 3.45 percent to 3.54 percent, the Central Bank of Brazil said on Monday.

According to the bank's weekly survey of leading financial institutions in the country, analysts also increased their 2021 inflation forecast from 3.4 to 3.47 percent.

The forecasts still fall within the government's inflation target of 4 percent in 2020 and 3.75 percent in 2021, with a 1.5 percentage point margin of flexibility up or down.

With that in mind, analysts maintained their forecast for the benchmark interest rate at the current level of 2 percent for 2020 and 3 percent for 2021.

Regarding gross domestic product (GDP), analysts reduced their forecast contraction in economic growth in 2020, from -4.55 to -4.5 percent, and slightly increased their forecast expansion in GDP in 2021, from 3.4 to 3.45 percent.
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