Brazil maintains growth forecast, downgrades inflation

Brazil maintained its gross domestic product (GDP) growth forecast for 2013 at 2.4 percent, but downgraded projected inflation slightly to 5.81 percent, the country's central bank said on Monday. According to the bank's Focus poll, a survey of the country's main financial institutions, the GDP growth of Latin America's largest economy should hit 2.4 percent this year, as predicted last week. Analysts also kept their GDP forecast for 2014 at 2.2 percent, but reduced the projected inflation forecast for 2014 from 5.82 percent to 5.81 percent. Both growth and inflation forecasts will be included in the government's target range, since Brazilian officials target an inflation rate of 4.5 percent for this year and next, with two-point leeway. Analysts expect the basic interest rate, currently at 9 percent, to rise to 9.75 percent by the end of the year and to maintain at this figure in 2014.