Brazilian analysts have adjusted their expectations of an increase in inflation and interest rates for 2008, the Central Bank said Monday.
In a weekly report, analysts expected an increase in this year's Extended National Consumer Price Index (IPCA), used to measure inflation in the country, to 5.24 percent from 5.12 percent, a figure released by the bank in its previous statement.
Although the Brazilian government had set an inflation target of 4.5 percent this year, it is the ninth week in a row that economists have estimated a higher IPCA rise.
Financial analysts also expected inflation rates to be 4.5 percent in 2009, the bank added.
The analysts also revised the expectation for the basic interest rates (Selic) to 13.5 percent by the end of this year, upfrom 13.25 percent in the previous report.
By the end of 2009, the Selic is expected to reach 12.25 percent, up from 12 percent in the previous study, they said.
Additionally, the Central Bank said the country's gross domestic product (GDP) is expected to reach 4.7 percent in 2008, arise from 4.69 percent as reported last week, which still remains below the government target of 5 percent.
Market analysts also said they believed the U.S. dollar will be traded for 1.70 reals by the end of 2008, and for 1.77 reals by the end of next year. The U.S. currency is currently traded at 1.65 reals.
Source:Xinhua
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