Brazil's Central Bank revises upwards 2008 inflation forecast

Special Report:Global Financial Crisis

RIO DE JANEIRO, Dec. 22 (Chinese media) -- Brazil's Central Bank revised upwards its 2008 inflation forecast on Monday to 6.2 percent from 6.1 percent predicted in its September report.

The bank also revised downwards its inflation forecast for 2009 to 4.7 percent from 4.8 percent.

Though Brazil's economy is resistant to external shocks, the impact of the ongoing economic crisis on the country is more serious than expected, said the bank.

The global market uncertainties, credit restrictions and a reduction in demand all indicate an economic downturn, it said.

The extent of the downturn is yet to be determined, which leads to uncertainty in the inflation projections for 2009, the bank added.

The bank also believes the impact of the crisis on the world's emerging economies would be stronger than foreseen in its September report.