Brazil: Growth Forecast Cut

Brazil’s central bank cut its 2005 growth forecast to 3.4 percent, down from 4 percent, and said nine months of interest rate increases will help ease inflation next year to 3.7 percent, compared with a previous forecast of 3.8 percent. The bank increased its 2005 inflation forecast to 5.8 percent from 5.5 percent, citing short termfactors such as rising utility rates.