By Rogerio Jelmayer
SAO PAULO--Economists lowered their 2017 outlook for Brazil's benchmark Selic interest rate after the central bank last week cut the rate by more than anticipated.
The Selic rate is forecast to end this year at 9.75%, according to a weekly central-bank survey of 100 economists, down from the 10.25% forecast in last week's survey.
Last week, the central bank cut the Selic rate to 13% from 13.75%, a deeper reduction than analysts had expected. They had forecast a half-percentage-point reduction.
For 2018, economists sees Selic rate at 9.50%, down from 9.63%, according to the survey.
Brazil's inflation rate, as measured by the official consumer price index, is expected to end this yearat 4.80%, compared with the 4.81% forecast in last week's survey. For 2018, experts maintained their inflation rate forecast at 4.50%.
The country's gross domestic product is expected to expand 0.50% in 2017, according to the survey, even with the previous week's forecast. For 2018, the economists expect GDP to expand 2.20% versus 2.30% projected in the previous survey.
They forecast Brazil to post a $46 billion trade surplus this year, the same as in the previous week's survey.
Write to Rogerio Jelmayer at email@example.com
(END) Dow Jones Newswires
January 16, 2017 06:23 ET (11:23 GMT)
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