UPDATE 1-Brazil analysts raise '10 GDP view sharply-cenbank

Mon Sep 6, 2010 8:00am EDT

* 2010 IPCA forecasts kept unchanged at 5.07 pct

* Brazil's GDP seen growing 7.34 pct in 2010 vs 7.09 pct (Adds GDP forecasts, interest rates)

SAO PAULO, Sept 6 (Reuters) - Analysts in a weekly central bank survey raised sharply their growth forecasts for Brazil's economy in 2010, while keeping estimates for inflation this year unchanged, data showed on Monday, underscoring the tame view on consumer prices in the months ahead.

Brazil's economy is forecast to expand by 7.34 percent in 2010, up strongly from the 7.09 percent estimate the previous week, and compared with 7.12 percent about one month ago, according to the central bank survey.

The forecasts may rise further in coming weeks as economists adjust their estimates to the better-than-expected second-quarter figures for gross domestic product released on Friday. For details, see [ID:nN03239813]

Economists forecast the benchmark IPCA inflation index at 5.07 percent for 2010, the same as in the previous week, after cutting the estimates in the previous two weeks.

For 2011, the IPCA estimates were reduced to 4.85 percent from 4.87 percent. The survey also showed GDP growth forecasts for next year unchanged for a 39th straight week at 4.5 percent.

The central bank has a 4.5 percent inflation target for 2010 and 2011, plus or minus 2 percentage points.

Central bank officials last week voted unanimously to keep the benchmark Selic rate unchanged at 10.75 percent, citing low inflation risks in the coming months. [ID:nN01111893] (Reporting by Elzio Barreto; editing by Jeffrey Benkoe)

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