Brazil cuts 2019 growth forecast by more than half

Bloomberg

Brazil’s central bank cut its 2019 growth forecast by more than half, blaming factors including falling confidence, a weaker than expected first quarter and a global slowdown.
Latin America’s largest economy will expand 0.8 percent this year, down from previous estimate of 2 percent in March, according to the central bank’s quarterly inflation report published. Policy makers are more pessimistic than analysts surveyed by the bank, who now expect gross domestic product to grow 0.87 percent in 2019 after cutting estimates for 17 consecutive weeks.
The central bank expects consumer prices to rise by 3.6 percent this year, 3.7 percent in 2020 and 3.9 percent in 2021 in the reference outlook, which entails a steady benchmark interest rate and currency.
In an outlook using economic parameters from its weekly analyst survey, the central bank expects consumer prices to rise 3.6 percent this year, 3.9 percent in 2020 and 3.9 percent in 2021.
Policy makers target inflation at 4.25 percent this year, 4 percent in 2020 and 3.75 percent in 2021. The monetary authority, led by its President Roberto Campos Neto, last week held its benchmark interest rate at an all-time low of 6.5 percent and signaled it could lower borrowing costs if economic reforms advance in Congress.