BRASILIA (Reuters) -Brazil’s Finance Ministry on Thursday trimmed its 2025 economic growth forecast to 2.2% from 2.3%, citing weaker gross domestic product (GDP) growth estimated in the third quarter that also affected its outlook for the final quarter.
“Indicators suggest that activity continued to slow in the third quarter,” the ministry said. “This slowdown was already expected, reflecting the lagged and cumulative effects of the restrictive monetary policy currently in place.”
Brazil’s benchmark interest rate is at a near two decade-high of 15% as the central bank seeks to bring inflation back to its 3% target, which has a tolerance band of 1.5 percentage points on either side.
The ministry’s economic policy secretariat cut its 2025 inflation projection to 4.6% from 4.8%, still above that goal.
(Reporting by Isabel Versiani; Writing by Isabel Teles; Editing by Gabriel Araujo)
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