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Economic Research

Brazil’s Central Bank Revises Its Forecasts

The central bank released its Q3 inflation report, in which its inflation forecast was revised down, while GDP growth forecasts stayed unchanged. The central bank’s base scenario for 2010 assumed a stronger exchange rate at BRL1.75 per U.S. dollar (BRL1.8 in June) and a stable benchmark SELIC rate at 10.75%. Moreover, for 2010, the monetary authority kept its growth expectations at 7.3%, but revised its inflation forecast down to 5% y/y, from 5.4% y/y in June. Inflation forecast for 2011 was revised to 4.6% y/y from[...]

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