Weekly Report - 18 August 2011 (WR-11-33)

BRAZIL | Slowing down? The central bank’s index of economic activity, the IBC-Br, fell in June for the first time since December 2008. It was down 0.26% month-on-month in June over May. Local economists have recently lowered their annual real GDP growth forecasts for this year and next to 3.93% and 4.00% respectively. Inflation also shows signs of slowing, which could allow the central bank to leave the benchmark Selic interest rate untouched at its next meeting on 31 August. Some industrialists are already calling for a cut in the Selic from its current rate of 12.5%.

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