BRASILIA, June 16 (Xinhua) -- Brazil's financial market lowered its inflation forecast for 2025 from 5.44 percent to 5.25 percent, and maintained its 2026 forecast at 4.50 percent, reflecting the impact of the monetary tightening policy, the Central Bank of Brazil said Monday.

According to the bank's weekly Focus survey of the country's leading financial institutions, the inflation forecast for the year is still far from the official target rate of 3 percent with a margin of tolerance of 1.5 percentage points either up or down.

Analysts' projections for the benchmark interest rate held steady at 14.75 percent for the end of the year and at 12.50 percent for next year.

Regarding Brazil's economic growth, market analysts upgraded their forecast for this year from 2.18 percent to 2.20 percent and for next year, from 1.81 percent to 1.83 percent.

Brazil's currency, which currently trades at 5.51 reals to the U.S. dollar, is expected to trade at 5.77 reals to the dollar by the end of 2025 and 5.80 reals by the end of 2026.

The trade balance (exports versus imports) is projected to see a surplus of 74 billion U.S. dollars this year and 78 billion U.S. dollars next year.

Market analysts maintained their forecast for foreign direct investment at 70 billion U.S. dollars for both 2025 and 2026. ■