June 30 (Bloomberg) -- Brazil's central bank cut its growth forecast for this year to 3.4 percent from the 4 percent estimate made in March.

Central bankers said in a quarterly report published today they expect consumer prices to rise 5.8 percent this year, compared with a 5.5 percent forecast in the previous report published March 29. They cut their inflation forecast for 2006 to 3.7 percent from 3.8 percent in March. Policy makers target inflation of 5.1 percent for this year and 4.5 percent in 2006.

To contact the reporter on this story: Romina Nicaretta in Sao Paulo at at Rnicaretta@bloomberg.net

Last Updated: June 30, 2005 07:47 EDT