Brazil’s financial market cuts 2022 inflation forecast

Brasilia, Dec 27 : Brazils financial market cut the inflation forecast for 2022 from 5.76 per cent to 5.

64 per cent, the Central Bank of Brazil.According to the banks weekly focus survey of the countrys top financial institutions, analysts raised the inflation forecast for 2023 from 5.17 per cent to 5.23 per cent, reports Xinhua news agency.The countrys official inflation target is 3.5 per cent for this year and 3.25 per cent for next year, with a margin of error of 1.5 percentage points in both cases.The market expects the benchmark interest rate, currently at 13.75 per cent annually, to gradually decline to 11.75 per cent in 2023.Economists slightly downgraded their forecast expansion in GDP for 2022 from 3.05 per cent to 3.04 per cent, but maintained their projection for 2023 at 0.79 per cent.In terms of the exchange rate, the market expects Brazils currency, the real, to trade at 5.25 to the US dollar at the end of the year and at 5.27 reals to the US dollar at the end of 2023.Analysts also estimated a trade surplus of $56.95 billion for 2022 and $58.8 billion for 2023.Meanwhile, Brazils foreign direct investment is expected to reach $81.6 billion in 2022 and $80 billion in 2023.#Brazils #financial #ecast.