Brazil Economists Lower 2019 Inflation Call for Fourth Week

(Bloomberg) -- Brazil economists lowered their outlook for end-2019 inflation to a fresh low after consumer prices rose half as much as expected by mid-August.

Analysts reduced their 2019 estimate for the benchmark ICPA index for a fourth straight week, to 3.59%. That’s nearly three-fourths of a basis point below the central bank’s 4.25% target.

The central bank board, led by its President Roberto Campos Neto, will meet this month and traders are evaluating whether policy makers have the space to maintain their rate-cutting pace of 50 basis points. The market pared expectations another cut of that size after gross domestic product data released Aug. 29 showed Brazil grew twice as much as expected in the second quarter.

The data also prompted the market to raise their 2019 GDP forecast to 0.87%, from 0.8% previously, according to the weekly survey.

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