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UPDATE 1-Economists trim Brazil 2012 and 2013 growth view-survey
November 26, 2012 / 10:56 AM / 5 years ago

UPDATE 1-Economists trim Brazil 2012 and 2013 growth view-survey

* Brazil expected to grow 3.94 pct in 2013, 1.5 pct in 2012

* Interest rates seen remaining stable through end-2013

SAO PAULO, Nov 26 (Reuters) - Economists trimmed their forecasts for economic growth in Brazil for 2012 and 2013 for the second week in a row, a weekly central bank survey showed on Monday.

Brazil is expected to grow 1.50 percent this year and 3.94 percent in 2013, according to the latest forecast, down from 1.52 percent and 3.96 percent in the same survey a week before.

The forecasts represent the median of predictions from about 100 financial institutions surveyed weekly by the central bank.

Forecasts for the central bank benchmark interest rate at the end of 2012 and 2013 remained unchanged at the current level of 7.25 percent, a record low.

The next central bank’s rate-setting meeting will take place on Tuesday and Wednesday.

The central bank had cut interest rates 10 times to the current level. That monetary stimulus measure, coupled with widespread tax reductions and credit incentives, are slowly lifting the economy after it skirted a recession.

Many analysts warn the economy may not gain traction, as investments remain weak and private banks put the brakes on consumer credit.

Consumer inflation over a 12-month period is expected to end this year at 5.43 percent, slightly down from 5.45 percent seen in the previous survey. In 2013, it is seen at 5.40 percent, up from 5.39 percent forecast a week before.

The government targets inflation at 4.5 percent, with a tolerance margin of 2 percentage points.

Consumer prices are expected to rise 0.48 percent in November over October, down from a forecast of 0.50 percent in the prior week’s survey.

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