Government warns it will not permit overvaluation of real
16 de setembro de 2010STF discutirá se derruba Ficha Limpa por completo
23 de setembro de 2010Financial market analysts have raised their estimates for inflation in both this year and in 2011. The market now sees the Broad Consumer Price Index (“IPCA” – the government’s official inflation metric) at 5.01% at the end of this year (up from 4.97%), and at 4.95% at the end of 2011 (up from 4.90%). The numbers are in the Central Bank’s weekly market survey known as the Focus report.
The government’s official inflation target is an IPCA at 4.5% at the end of both 2010 and 2011. The official target has wiggle room, however; there is a “margin of error” of give or take two percentage points. Which means it could vary between 2.5% and 6.5%.
As for the benchmark interest rate, the Selic, market expectations are that it will close out 2010 at 10.75%, and 11.75% in 2011.
