Inflation expectations rise after Brazil c.bank decision - poll
BRASILIA, Jan 25 (Reuters) - Inflation expectations in Brazil rose sharply last week after the central bank kept interest rates on hold in a controversial decision, a central bank poll of economists showed on Monday. Median forecasts for inflation in 2016 and 2017 rose to 7.23 percent and 5.65 percent respectively, up from 7.00 percent and 5.40 percent in the prior week's survey, according to the survey of about 100 economists. The government targets inflation at 4.5 percent. The central bank surprised investors last week by holding interest rates steady at 14.25 percent instead of raising them to keep inflation expectations near the target. (pct) 2016 2017 previous new previous new forecast forecast forecast forecast Consumer inflation 7.00 7.23 5.40 5.65 Exchange rate 4.25 4.30 4.30 4.40 (reais per U.S dollar, end-period) Interest rate 15.25 14.64 12.88 12.75 (end-period) GDP growth -2.99 -3.00 1.00 0.80 Industrial output -3.47 -3.57 1.80 1.50 (Reporting by Silvio Cascione)
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