UPDATE 1-Brazil's 2016 inflation forecast tops 6 percent - poll
(Adds data, background) BRASILIA, Oct 13 (Reuters) - Market forecasts for Brazil's inflation rate in 2016 rose for a 10th straight week and surpassed 6 percent, a central bank survey showed on Tuesday, suggesting a smaller possibility of interest rate cuts in coming months even as the economy contracts. Brazil's annual inflation is set to end 2016 at 6.05 percent, above the government's 4.5 percent target, according to the median forecasts of about 100 economists in the survey. The median estimate of the five most accurate forecasters in the poll projected inflation even faster, at 6.72 percent. Inflation expectations through 2018 have risen since early September as Brazil's currency hit an all-time low, undermining the central bank's efforts to keep price pressures under control with interest rates hiked to 14.25 percent. Forecasts for benchmark interest rates at end-2016 rose in the poll, even as estimates for economic growth in 2015 and 2016 were revised down to minus 2.97 percent and minus 1.2 percent respectively. (pct) 2015 2016 previous new previous new forecast forecast forecast forecast Consumer inflation 9.53 9.70 5.94 6.05 Exchange rate 4.00 4.00 4.00 4.15 (reais per U.S dollar, end-period) Interest rate 14.25 14.25 12.50 12.63 (end-period) GDP growth -2.85 -2.97 -1.00 -1.20 Industrial output -6.50 -7.00 -0.29 -1.00 (Reporting by Silvio Cascione; Editing by Chizu Nomiyama)
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