ARGENTINA: Economists Raise 2018 Inflation Forecast To 19.4% From 17.4%

(RTTNews) - Analysts in Argentina increased their forecast for the monthly inflation in February 2018 from 1.6% to 2.1%, according to a survey conducted by the country's central bank.

They also raised their forecast for this year's inflation rate for the ninth consecutive month, to 19.4%, from 17.4%, The estimate for the annual core inflation in 2018 also increased by two percentage points, to 16.9%.

Regarding monetary policy, the benchmark interest rate estimates fell for all the relevant survey period. The respondents expect the BCRA to keep a gradual reduction in the benchmark interest rate, starting with a 25 bp cut before the end of February, to 27%, from the current level of 27.25%.

Finally, the survey's respondents project a 3.0% growth in the Gross Domestic Product (GDP) for 2018, 0.2 percentage points lower than the 3.2% growth expected in the previous survey.