Brazil Analysts See Faster 2016 CPI for First Time in 20 WeeksMario Sergio Lima and David Biller
Brazil analysts raised their 2016 inflation forecast for the first time in 20 weeks as the real weakens.
Analysts forecast annual inflation will reach 5.43 percent at the end of next year, up from 5.40 percent the prior week, according to the Aug. 7 central bank survey of about 100 analysts published Monday. They forecast the real will finish 2015 at 3.4 per dollar, compared with a previous estimate of
3.35 per dollar.
Brazil’s borrowing costs are now at their highest in nine years to rein in inflation that’s more than double the central bank’s 4.5 percent target. Economists forecast Latin America’s biggest economy will contract 1.97 percent this year and remains stagnant next year, the survey shows.
The central bank has boosted the benchmark interest rate in seven straight meetings to 14.25 percent, most recently by 50 basis points in July. Policy makers signaled in their last meeting that borrowing costs are high enough to slow inflation toward its target by year-end 2016.
For Related News & Information: Brazil Boosts Rate by Half-Point Saying Level Is High Enough Brazil June Primary Budget Deficit Wider Than Analysts Forecast Brazil’s Consumer Prices Climb More Than Forecast in July (1)
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- In One Tweet, Kylie Jenner Wiped Out $1.3 Billion of Snap’s Market Value
- China Regulator Seizes Anbang, Chairman Faces Fraud Prosecution
- The Two Words That Will Help Get an Airline Upgrade Over the Phone
- Snap CEO Evan Spiegel Got $638 Million in Year of Firm's IPO
- Apple Plans Upgrades to Popular AirPods Headphones