Brazil’s central bank expects higher decrease of Brazilian economy


The Central Bank (BC) in Brazil revised its forecast and predicted that the national economy will have a decrease of 3.22 percent this year and not 3.19 as envisaged above.

In the same way, and according to the results of the weekly Focus survey that the entity makes between financial institutions, by 2017 the expected growth of gross domestic product (GDP) was decreased from 1.30 to 1.23 percent.

Moreover, the BC adjusted for the sixth consecutive time down the level of inflation measured by the National Price Index Extended Consumer and estimated that it will close the year at 6.89 percent. Last week was considered to be of 7.01 percentage points.

By 2017 inflation forecast, bringing it to 5.04 to five percent was also reduced.

With the expectation of shrinkage of the economy and lower inflation, said the Agency Brazil, financial institutions expect the basic interest rate, Selic, closing 2016 at 13.50 percent, after the Monetary Policy Committee (Copom ) of BC’s reduced last week of 14.25 to 14 percent.