The declining inflation forecast reinforced hope that the bank's Monetary Policy Committee would start the process of cutting the cost of borrowing this week. A decision is to be announced on Wednesday.
According to the bank's weekly Focus survey, analysts kept their forecast for the benchmark Selic interest rate at 12 percent for this year, but lowered it to 9.25 percent for next year, 4.5 percentage points lower than the current annual rate.
The forecast for Brazil's GDP growth was held steadily at 2.24 percent for 2023 and 1.30 percent for 2024.
This year's trade balance is expected to see a surplus of 66 billion U.S. dollars, with next year's surplus dropping to 60 billion dollars, said the survey.
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