Brazil 2015 inflation rate to hit 11-year high: analysts

Brazil's inflation rate is expected to hit an 11-year high in 2015, the country's central bank said on Monday.

Analysts expected that the annual inflation rate will rise from current 6.67 to 6.99 percent, way above a central target of 4.5 percent, and nearly half a percentage point over the government ceiling of 6.5 percent, said the Central Bank's weekly forecast.

The forecast figure will be the highest since inflation reached 7.6 percent in 2004.

Market analysts also lowered their growth projections for the country's gross domestic product (GDP), from 0.38 percent last week to 0.13 percent, marking the fourth time in a row that experts have downgraded their economic growth forecast.

The growth forecast for 2016 was also downgraded from 1.8 percent to 1.54 percent.

The financial market expects the country's annual basic interest rate, currently at 12.25 percent, to end the year at 12.5 percent.

Analysts expect the interest rate to decrease in 2016 to 11.5 percent.

The exchange rate forecast shows that the national currency is expected to end the year at 2.8 reals to the U.S. dollar, and to close 2016 at 2.9 reals to the dollar.

Brazil's trade balance is expected to register a surplus of 4.5 billion dollars in 2015, and to more than double next year to 10 billion dollars.

Foreign direct investment is expected to reach 60 billion dollars in both 2015 and 2016. Endi