By Rogerio Jelmayer
SAO PAULO--Economists lowered their 2016 inflation forecasts for Brazil, 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 6.80% this year, compared with a previous forecast of 6.84%, the survey showed.
For 2017, economists maintained their inflation forecast at 4.93%.
Meanwhile, economists kept their year-end outlook for the Selic benchmark interest rate at 13.75% this year and 10.75% next year.
Economists expect Brazil's gross domestic product to contract 3.40% this year, versus the 3.37% contraction seen in lastweek's survey. Brazil's economy shrank 3.8% in 2015, according to the country's statistics bureau.
Economists lowered their view of 2017 GDP growth to 1% from 1.13%. They also cut their 2016 projection of Brazil's trade surplus to $47.42 billion from $47.59 billion.
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(END) Dow Jones Newswires
November 21, 2016 06:04 ET (11:04 GMT)
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