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Montevideo, November 17th 2018 - 19:38 UTC

Brazilian central bank inflation estimates anticipate increase in interest rates

Thursday, June 25th 2015 - 07:33 UTC
Full article 6 comments
The Central Bank's Monetary Policy Committee will meet in late July to adjust the benchmark interest rate, currently at 13.75% The Central Bank's Monetary Policy Committee will meet in late July to adjust the benchmark interest rate, currently at 13.75%

The Brazilian Central Bank on Wednesday raised its inflation estimate for 2015 to 9%, or almost double the midpoint in the official range and well above the 6.5% top end target, and said the economy may contract by 1.1% this year, marking the worst performance since 1990.

 The quarterly Central Bank report estimated that the inflation rate would be 4.8% in 2016, a figure closer to the midpoint in the official range and below the 4.9% projected in the previous report.

The first-quarter projections called for an inflation rate of 7.9% and a drop in the GDP of 0.50%.

The Central Bank's Monetary Policy Committee will meet in late July to adjust the benchmark interest rate, currently at 13.75%, as the financial markets push for a halt in the interest rate hikes that officials justified as a tool for fighting inflation.

“The ongoing macroeconomic adjustment process, necessary and essential to consolidate the fundamentals favoring a convergence of inflation with the goal for late 2016, is associated with the consequences of non-economic events that have had a negative impact on short-term dynamics,” the Central Bank

Categories: Economy, Politics, Brazil.

Top Comments

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  • golfcronie

    So sorry Brasso, can you please explain as you are our top notch financial guru.

    Jun 25th, 2015 - 02:49 pm 0
  • yankeeboy

    Until they stop giving free money to slum dwellers they'll never nip the o' inflation bugaboo.

    :)

    Jun 25th, 2015 - 04:12 pm 0
  • ChrisR

    Great idea to stoke inflation even more and suppress demand: just what the economy needs, NOT.

    You can see where Brasso gets his stupidity from, even the so called 'smart' people are really stupid.

    Jun 25th, 2015 - 06:48 pm 0
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