Brazil's economic activity index decelerates

Rio de Janeiro, Aug 16 (IANS) Brazil's economic activity slowed in the second quarter of 2013 compared with the first quarter of the year, the central bank said.

The Economic Activity Index (IBC-Br) edged up 0.89 percent in the period, while the first quarter witnessed 1.1 percent growth, Xinhua reported.

The index, known as the IBC-Br, is considered a leading indicator for gross domestic product growth or contraction.

Compared on a yearly basis, economic activity expanded 3.97 percent, said the bank Thursday.

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. The bank's 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, whereas the bank predicts 2.7 percent and the financial market forecasts 2.21 percent.


Get stories like this on the Yahoo app and discover more every day.
Download it now.