Brazil: Retail Sales Growth Slows

Brazilian retail sales rose 2.7 in May, the slowest pace in three months, as higher borrowing costs weighed on consumer spending. The central bank in May interrupted nine months of interest rate increases that left the benchmark lending rate at 19.75 percent, the highest in 18 months. Economists said the higher cost of financing will help the bank bring down inflation to its 5.1 percent year-end target.