LatinNews Daily - 13 June 2023

* Brazil’s central bank (BCB) has released the latest edition of its Focus bulletin, a weekly survey of private sector economists and analysts, which predicts that annual inflation will be 5.42% for 2023, down from the 5.69% forecast from the previous week’s bulletin and from the 6.03% forecast the previous month. The bulletin also highlighted a reduction in annual inflation forecasts for the next few years. Surveyed analysts predicted an annual inflation rate of 4.04% in 2024 (down from 4.12% forecast last week), 2025 is predicted to end at 3.90% (down from 4.00% last week), and the forecast for 2026 is at 3.88% (down from 4.00%). These steadily decreasing annual forecasts and the recently reported slowdown in monthly inflation might increase the pressure on the BCB to lower its benchmark interest rate, maintained at 13.75% for six consecutive months. But even if 2023 closes the year at 5.42% annual inflation, that would still be above the BCB’s inflation target of 3.25% +/-1.5.