Focus report, from the Central Bank, points to an improvement in expectations for inflation and GDP growth in 2023.| Photo: Marcello Casal Jr/Agência Brasil

Financial market agents reduced, for the second week in a row, inflation expectations for the year 2023, according to the Central Bank’s Focus Report, released this Monday morning (29). According to analysts heard by the institution, the IPCA variation should end the year at 5.71%, a drop of 0.9 percentage points compared to last week and 0.34 a month ago (see full text).

The Focus Report also points to an increase of 1.26% in the projection for the Gross Domestic Product (GDP) of the country for the year, with a growth of 0.06 percentage points compared to last week and of 0.26 with the registered four weeks ago.

The dollar exchange rate should end 2023 at R$5.11, also reflecting an improvement in the economy’s projections. Last week, the US currency was quoted at R$5.15, and at R$5.20 a month ago.