BRASILIA: Economic activity in Brazil rose by a seasonally adjusted 0.3 percent in August from the previous month, a central bank index showed on Friday, matching the median forecast in a Reuters poll of economists.
The IBC-Br index, a proxy for gross domestic product, is compiled using the bank’s estimates for agriculture, industry and services, as well as taxes linked to production.
August’s gain was driven by industry, which expanded 0.9percent from July. On an unadjusted basis, the index was up 1.2 percent from a year earlier and rose 1.6 percent on a rolling 12-month basis through August. Brazil’s central bank has argued that slower economic activity is needed for inflation to converge to its 3 percent target. The bank forecasts gross domestic product growth of 1.8 percent this year, slowing to 1.4 percent in 2027.
Policymakers are due to meet in early November for their next monetary policy decision after delivering five straight 25-basis-point interest rate cuts, bringing the benchmark Selic rate to 13.75 percent .