Brazil Analysts Cut 2016 CPI Forecast for First Time in 6 Weeks

Analysts covering the Brazilian economy cut their 2016 inflation forecast for the first time in six weeks as the central bank signals it will continue to raise interest rates.

Analysts predict consumer prices will rise 5.51 percent in 2016, down from a week earlier forecast of 5.6 percent, according to the May 8 central bank survey of about 100 analysts published Monday. They also increased their year-end 2016 interest rate forecast to 11.63 percent from 11.50 percent.

The gains in the fight against inflation are still insufficient, the central bank said May 7 in the minutes to its April 28-29 board meeting. Policy makers raised interest rates for a fifth straight meeting last month to 13.25 percent.