Economists raise forecasts for Brazil's GDP, inflation - poll
BRASILIA, Aug 29 (Reuters) - Economists last week raised their forecasts for Brazil's economic growth and inflation in 2016 and 2017, the central bank said on Monday, as a two-year-long recession in Latin America's largest economy appears to be nearing an end. The median estimate of about 100 economists for Brazil's inflation rate edged up to 7.34 percent in 2016 and 5.14 percent, the bank said. The government's inflation target is 4.5 percent, and the central bank has suggested it will refrain from cutting interest rates while inflation expectations remain above the official goal. The next central bank policy meeting takes place on Wednesday and economists unanimously expect rates to remain on hold at 14.25 percent, the highest in almost a decade. The five most accurate forecasters in the bank's poll projected inflation to end 2017 at an even higher rate of 5.33 percent, the central bank said. (pct) 2016 2017 previous new previous new forecast forecast forecast forecast Consumer inflation 7.31 7.34 5.12 5.14 Exchange rate 3.30 3.29 3.45 3.45 (reais per U.S dollar, end-period) Interest rate 13.75 13.75 11.00 11.25 (end-period) GDP growth -3.20 -3.16 1.20 1.23 Industrial output -5.95 -5.98 1.05 0.50 (Reporting by Silvio Cascione)
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