BRAZIL CENTRAL BANK QUARTERLY INFLATION REPORT: Cuts 2014 and 2015 growth outlook and raises inflation forecasts
- Cuts 2014 GDP growth from 0.7% to 0.2%
- Cuts 2015 GDP growth from 1.2% to 0.6%
- Raises 2014 inflation view from 6.3% to 6.4%
- Raises 2015 inflation view from 5.8%to 6.1%
- Sets 2016 inflation at 5.0%
Comments:
- Reiterates view that must remain especially vigilant in order to minimize risks that high inflation rates, such as the ones observed in the last twelve months, persist in the relevant horizon for monetary policy
- Will do whatever is necessary to bring inflation towards center of target (aka 4.5%)
- Sees inflation entering a long period of decline in 2015 but not ruling out any short-term surge in inflation