MNI BRIEF: 100% Chance of Exceeding 2024 Inflation Target -BCB
MNI (BRASILIA) - The Central Bank of Brazil sees a 100% chance of inflation exceeding the upper limit of its target tolerance range in 2024, according to its fourth quarter report released Thursday, up from a 36% probability in its third quarter report.
The probability of exceeding the target increased also for 2025, from 28% to 50%, and for 2026, from 19% to 26%.
"Reflecting the upward revision of forecasts, the probability of inflation exceeding the upper limit of the tolerance range has increased", the document said. The goal is 3% with a tolerance range of 1.5 points of percentage up or down.
The inflation forecast for 2024 by monetary policy committee Copom increased to 4.9% in the baseline scenario from 3.5% in the last report. (See MNI BCB WATCH: Rates Headed Above 14%, Destination Unclear)