Brazil Analysts See Deeper Recession, Higher Interest Rates

Analysts covering the Brazilian economy forecast the central bank will raise interest rates once more this year and predict a deeper recession than previously expected.

Analysts raised their 2015 year-end interest rate forecast to 13.5 percent, up from 13.25 percent, according to the April 30 central bank survey of about 100 analysts published Monday. They forecast gross domestic product will contract 1.18 percent in 2015, compared with a 1.1 percent drop a week earlier.