Brazil analysts raise inflation, cut GDP forecasts for 2016

Sao Paulo

FOR the sixth straight week, Brazil analysts boosted their inflation forecast for 2016 and cut their growth estimate, after Brazil's credit rating was cut to junk status.

Brazil's economy will contract 2.55 per cent in 2015 and by 0.6 per cent in 2016, according to the Sept 11 central bank survey of about 100 analysts. That compares with the previous estimates of declines of 2.44 per cent and 0.5 per cent respectively. The analysts also raised their 2016 inflation forecast to 5.64 per cent from 5.58 per cent.