Economists cut Brazil growth view, raise interest rate outlook

Mon Jun 10, 2013 7:40am EDT

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SAO PAULO, June 10 (Reuters) - Economists raised their
forecasts for Brazil's interest rates and exchange rate at the
end of this and next year, and trimmed estimates for economic
growth, according to a weekly central bank survey published on
    Brazil is expected to grow 2.53 percent this year, down from
2.77 percent in the prior week, according to the median forecast
of about 100 economists. Interest rates were seen ending the
year at 8.75 percent, up from a forecast of 8.50 percent seen in
the prior week's survey.
    Brazil's currency, the real, was seen ending this
year at 2.10 per U.S. dollar, up from an estimate of 2.05 per
dollar in the prior week. The real has dropped to a four-year
low in recent weeks as global investors fear that the U.S.
Federal Reserve may soon taper stimulus measures that have
supported the appetite for risk assets in emerging markets. 

 (pct)                2013                 2014
                      previous   new       previous  new
                      forecast   forecast  forecast  forecast
 Consumer inflation   5.80       5.80      5.80      5.80
 Exchange rate        2.05       2.10      2.10      2.15

 Interest rate        8.50       8.75      8.50      8.75

 GDP growth           2.77       2.53      3.40      3.20
 Industrial output    2.50       2.53      3.00      3.00
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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