By Rogerio Jelmayer
SAO PAULO--Economists lowered their inflation forecasts for Brazil for this year and next, as the country's poor economic performance is likely to ease the pressure on prices, according to the central bank's latest weekly survey of 100 economists.
Economists now expect inflation, as measured by the consumer-price index, to rise to 6.84% this year, compared with a previous forecast of 6.88%, the survey showed.
For 2017, economists cut their inflation forecast to 4.93% from 4.94%.
Meanwhile, economists raised their year-end outlook for the Selic benchmark interest rate to 13.75% from 13.50% and kept their view for the benchmark rate at 10.75% for next year.
Economists expect Brazil's gross domestic product to contract 3.37% this year, versus the 3.31% contraction seen in last week's survey. Brazil's economy shrank 3.8% in 2015, according to the country's statistics bureau.
Economists cut their view of 2017 GDP growth to 1.13% from 1.20%. They also cut their 2016 projection of Brazil's trade surplus, to $47.59 billion from $47.77 billion.
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(END) Dow Jones Newswires
November 14, 2016 05:56 ET (10:56 GMT)
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