Brazil Central Bank Sees Faster Growth This Year Before Downturn

  • Policymakers delivered second straight rate cut to 12.75%
  • Activity to grow 2.9% this year, 1.8% at year-end 2024
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Brazil’s central bank raised its 2023 economic growth forecast while warning of a looming drop-off in activity next year as monetary policy remains tight.

The bank forecasts gross domestic product will expand 2.9% this year, more than the 2% growth estimate from June, according to its quarterly inflation report published on Thursday. It sees activity growing 1.8% next year.