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Financial market reduces inflation estimate for 2019
Brazil’s official inflation rate is the Broad Consumer Price Index (IPCA) - Photo: Marcos Santos/USP Imagens
The financial market remains confident of the country's economic growth in 2019. According to the Focus Bulletin released by the Central Bank on Monday (February 25), the forecast for inflation this year went from 3.87% to 3.85%, below the center of the target (4.25%).
The expectation of analysts for 2020 is that the Broad Consumer Price Index (IPCA), Brazil's official inflation index, will reach 4%, followed by another drop to 3.75% in 2021.
At the same time, the economists consulted by the Central Bank predict economic growth to make a steady comeback. Financial market projections point to a 2.48% advance in gross domestic product (GDP) this year. In 2020, the expectation is for the same rate to increase, namely to 2.65%.
The Focus Bulletin is a weekly publication, released every Monday, which averages out the forecasts of more than 100 market analysts surveyed by the Central Bank. They report their projections to the bank, which weighs up the different predictions and releases the results.