Brazil's inflation outlook worsens in central bank poll

miércoles 10 de febrero de 2016 10:37 GYT
 

BRASILIA, Feb 10 (Reuters) - Economists raised their
forecasts for Brazil's 2016 and 2017 inflation rate in a weekly
central bank poll, adding pressure on policymakers to resume
interest rate hikes despite a recession.
    The median expectation of about 100 analysts in the survey
projected inflation at 7.56 percent at end-2016 and 6.00 percent
at end-2017, up from 7.26 percent and 5.80 percent respectively
in the prior week's poll. The forecasts are usually updated
every Monday but were postponed this week due to Carnival.
    Brazil's central bank targets inflation at 4.5 percent but
refrained from raising interest rates from 14.25 percent last
month as policymakers bet the country's deep recession could
help reduce price pressures this year.
        
 (pct)         2016                  2017
               previous   new        previous  new
               forecast   forecast   forecast  forecast
 Consumer      7.26       7.56       5.80      6.00
 inflation                                     
 Exchange      4.35       4.35       4.40      4.40
 rate (reais                                   
 per U.S                                       
 dollar,                                       
 end-period)                                   
 Interest      14.25      14.25      12.75     12.50
 rate                                          
 (end-period)                                  
 GDP growth    -3.01      -3.21      0.70      0.60
 Industrial    -3.80      -4.00      1.50      1.50
 output                                        
 
    

 (Reporting by Silvio Cascione; Editing by Chizu Nomiyama)