UPDATE 1-Economists trim Brazil 2013 inflation view

Mon Feb 25, 2013 7:02am EST

Related Topics

* Economists see interest rates unchanged this year
    * 2013 GDP view up to 3.10 pct, 2014 growth outlook down

    SAO PAULO, Feb 25 (Reuters) - Economists trimmed their
forecasts for Brazil's 2013 inflation rate for the second week
in a row, suggesting the central bank could keep interest rates
on hold this year, a weekly central bank survey showed on
    The outlook for inflation, as measured by the benchmark IPCA
consumer price index, edged down to 5.69 percent from 5.70
percent in the prior week, according to the median forecast of
about 100 economists.
    The outlook for inflation in the next 12 months was also
lowered to 5.49 percent from 5.53 percent the week before.
    The central bank targets inflation at 4.5 percent, with a
tolerance margin of plus or minus 2 percentage points.
    Economists maintained their forecasts for Brazil's year-end
benchmark interest rate at 7.25 percent. Their
outlook contrasts with growing bets in futures markets that the
central bank could raise borrowing costs this year to keep
inflation within the target. 
    The next central bank rate-setting meeting will take place
on March 5-6.
    Economists raised their forecasts for growth of Latin
America's largest economy in 2013 to 3.10 percent. They trimmed
their median estimate for 2014 GDP growth to 3.60 percent.
    In February, consumer prices are expected to rise 0.43
percent, up from a previous forecast of 0.42 percent, the poll
showed. Prices rose more than expected in the month through
mid-February, data showed last week. 
 (pct)                2013                 2014
                      previous   new       previous  new
                      forecast   forecast  forecast  forecast
 Consumer inflation   5.70       5.69      5.50      5.50
 Exchange rate        2.02       2.00      2.05      2.05

 Interest rate        7.25       7.25      8.25      8.25

 GDP growth           3.08       3.10      3.65      3.60
 Industrial output    3.00       3.10      3.50      3.50
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