December 21, 2006
Brazil's Central Bank has scaled back its economic growth forecast for this
Brazil's Central Bank has scaled back its economic growth forecast for this year from 3.5% to 3%, according to the latest quarterly report. The Bank also lowered its estimate for inflation this year, predicting a rate of 3.1% down from 3.4% and for 2007 the forecast is down to 3.9% against an earlier estimate of 4.3%. The continuing strength of the real combined with the lower growth and inflation estimates point to further interest rate cuts by the Central Bank into next year, say analysts.