Brazil: Lower Growth Forecasted

Brazil´s government lowered its forecast for economic growth this year from 4.0 percent to 3.4 percent. Central bankers raised the benchmark lending rate nine times between last September and April and this month decided to leave it at a 21-month high of 19.75 percent to slow down inflation. The government also increased its year-end inflation forecast to 5.57 percent from 5.1 percent and raised its forecast for this year’s average benchmark interest rate to 19.15 percent from 18.87 percent.