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)