Brazil’s central government exceeded its budget target for 2011 by posting a primary surplus (excluding interest payments) of 93.5 billion Reais (53.7 billion dollars) for the year.
The central government had a primary surplus of 2 billion Reais in December after a revised 4.71 billion-Real surplus in November, the Treasury said in a statement distributed in Brasilia on Friday. The monthly figure pushed the 2011 total up above its target of 91.7 billion Reais.
Treasury Secretary Arno Augustin said the government expects to meet its 2012 primary budget surplus target of 97 billion Reais. The central bank this month said there is a “high” chance its benchmark rate will drop below 10%, signaling it remains focused on spurring growth.
Yields on interest-rate futures contracts fell on bets the central bank will cut borrowing costs below 10% in the first half of 2012. The Real advanced 0.5% to 1.7399 per US dollar, from 1.7491 Thursday, extending its gain this week to 0.90%.
Consumer prices will rise 5.29% this year, according to the median forecast in a Jan. 20 central bank survey of about 100 economists published this week. The bank targets an annual inflation rate of 4.5%, plus or minus two percentage points.