Brazil's economic activity slightly decelerates in Q2

Brazil's economic activity slowed down in the second quarter of 2013, compared with the first quarter of the year, the central bank announced on Thursday. The Economic Activity Index (IBC-Br) edged up 0.89 percent in the period, while the first quarter witnessed a 1.1-percent growth. The IBC-Br index, considered as a preview of the official gross domestic product (GDP) figure expected to be released in September, is a gauge of activity in the industrial, agricultural and tertiary sectors Compared on a yearly basis, economic activity expanded 3.97 percent, said the bank. The accumulated IBC-Br index in the first half of the year showed that economic activity was up 2.9 percent, compared with the same period in 2012. The central bank, which raised the interest rate to 8.5 percent last month, will adjust the annual basic interest rate based on the IBC-Br index. Its Monetary Policy Committee will meet in late August to decide whether the rate should be changed. The government expects to close the year with an economic growth of 3.0 percent, the bank predicts 2.7 percent and the financial market forecasts 2.21 percent.