BRASILIA, June 26 Brazil's central bank cut its economic growth forecast for 2014 and expects inflation to subside after a temporary peak this year, reinforcing expectations that policymakers will keep interest rates steady for some time.
The central bank lowered its 2014 economic growth forecast to 1.6 percent from 2 percent in its previous estimate. The bank rose its 2014 inflation forecast to 6.4 from 6.1 percent, but said current inflation pressures will subside afterwards.
In its quarterly inflation report released on Thursday, the bank also estimates that the economy will likely grow at an annual rate of 1.8 percent in the first quarter of 2015. (Reporting by Silvio Cascione Editing by W Simon)