Brazil's 2016 inflation forecasts rise slightly in survey
BRASILIA, March 7 (Reuters) - Inflation expectations in Brazil held up far above the government's target range last week, limiting the room for possible interest rate cuts despite the recession, a weekly central bank survey showed on Monday. Forecasts for Brazil's 2016 inflation rate rose slightly to 7.59 percent from 7.57 percent in the prior week's survey, above the 6.5 percent ceiling of the official target range. Expectations for Brazil's economic growth in 2016 and 2017 remained unchanged, projecting only a meagre recovery next year after a second straight year of sharp contraction in 2016. (pct) 2016 2017 previous new previous new forecast forecast forecast forecast Consumer inflation 7.57 7.59 6.00 6.00 Exchange rate 4.35 4.30 4.40 4.40 (reais per U.S dollar, end-period) Interest rate 14.25 14.25 12.50 12.50 (end-period) GDP growth -3.45 -3.50 0.50 0.50 Industrial output -4.50 -4.50 0.80 0.57 (Reporting by Silvio Cascione; Editing by Alison Williams)
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