Matthew Cowley – The Wall Street Journal, 07/30/2012
Brazil’s real opened slightly weaker Monday morning as inflation expectations again ticked higher, and investors awaited Tuesday’s deadline for the central bank to roll over dollar swap contracts.
Financial market analysts and economists increased their forecasts for Brazil’s 2012 year-end inflation for the third consecutive week, according to the weekly central bank survey. The average forecast for Brazil’s inflation rate at the end of this year was increased to 4.98% from 4.92%.
The inflation view for the end of 2013 was maintained at 5.5%. Brazil’s inflation rate was 6.5% last year, the highest since 7.6% in 2004. Their forecast for Brazil’s gross domestic product growth for this year was maintained at a paltry 1.90%.