They are now looking for GDP in 2015 to come in between 2.0 to 2.5 percent, a tighter spread from the previous 2.25 to 3.25 percent forecast in June. They have maintained their 2016 forecast of 2.5 to 3.5 percent. GDP in 2014 came in at 1.9 percent.
The depreciation of the peso has been pushing inflation higher, out of the BC’s target range of 2.0 to 4.0 percent. In the same report they raised year-end 2015 inflation expectation to 4.6 percent from the previous 3.4 percent. The BC expects inflation to stay above the target range until 2017 when it should drop to 3.0 percent.