The financial institutions' forecast for inflation as officially measured by the Broad National Consumer Price Index (IPCA) was slightly lowered from 7.27% to 7.26%, at the second consecutive downward revision. The projection for 2017 has also been revised for the second straight week, down from 5.43% to 5.40%. These forecasts are part of a survey of the financial market projections for the main economic indicators published by the Central Bank on Mondays.

These estimates are still far from the inflation target of 4.5%. The upper target range is 6.5% this year and 6% in 2017.

The Central Bank is responsible for making sure inflation stays within the target by using such instruments as the benchmark interest rate (SELIC) to influence economic activity. The SELIC rate currently stands at 14.25% per annum, whereas forecasts remained stable at 13.25% p.a. this year and 11% p.a. at the close of 2017.

GDP 

The forecast for this year's Gross Domestic Product (GDP) remains negative, but the expected decline has been narrowed from 3.35% to 3.30%. For 2017, the 1% growth estimate from the four past weeks has been maintained.

Dollar 

The projected end-of-year dollar exchange rate has been revised down from R$3.46 to R$3.40 for this year and from R$3.70 to R$3.55 for the end of 2017.