Gradual economic growth and persistently low inflation in Brazil are likely to pave the way for a further reduction in interest rates, the country’s central bank indicated on Tuesday, warning that global economic conditions appear to be deteriorating.
Brazil's financial market has cut its forecast of the country's inflation rate from 3.94 to 3.87 percent for 2019 and kept the rate at 4% for 2020, the Central Bank of Brazil reported. According to the Focus survey conducted by the bank among Brazil's main financial institutions, the forecasts are within the official target of 4.25 percent, with a tolerance margin between 2.75 percent and 5.75 percent.
Brazil Central Bank head of Monetary Policy Aldo Mendes anticipated Monday that inflation in the coming two/three months will be almost flat, close to zero and supported his forecast on the food prices inflexion tendency.