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[posting]22455730[/posting]Brazil Economists Cut Yr-End Rate Forecast to 14.25% (Update1) July 10 (Bloomberg) -- Brazilian economists lowered their forecast for the benchmark interest rate at year-end for a second week as declines in the cost of fuel and food drive down consumer prices. The economists cut their year-end forecast for Brazil's overnight rate to 14.25 percent from 14.38 percent, according to a weekly central bank survey of about 100 economists at financial institutions taken July 7 and published today. The economists also lowered their forecast for 2006 inflation for a sixth week. They now expect inflation this year to end at 3.81 percent from 3.98 percent, the survey showed. ``The market is now expecting an additional cut in the benchmark lending rate as recent inflation numbers have positively surprised investors,'' Newton Rosa, chief economist at SulAmerica Investimentos, said in a phone interview from Sao Paulo. ``Going forward, nobody anticipates pressure on inflation by year-end.'' Brazil's consumer prices, as measured by the government's benchmark IPCA index, fell 0.21 percent in June, reversing an increase of 0.1 percent in May, according to Brazil's national statistics agency. Annual inflation slowed to a seven-year low, dropping to 4.03 percent for the 12 months ended in June from 4.23 percent through May. The economists in the bank's survey also expect Brazil's currency to end 2006 stronger than previously forecast, trading at 2.23 per dollar at year- end compared with the previous forecast of 2.24 per dollar, the survey showed. The economists raised their forecast for inflation over the next 12- months to 4.41 percent from 4.34 percent, the survey showed. ``The economists raised this forecast for the 12-month inflation because the past cuts in the overnight rate by the central bank will likely quicken economic activity and inflation in the first half of 2007,'' Rosa said. The central bank expects the Brazilian economy to expand 4 percent this year, according to the bank's quarterly inflation report published June 28. |
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| aus der Diskussion: | Brasilien |
| Autor (Datum des Eintrages): | kwart (11.07.06 00:15:11) |
| Beitrag: | 3 von 3 (ID:22511483) |
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