BRASILIA, Oct 16 (Reuters) – Economic activity in Brazil rose by a seasonally adjusted 0.3% 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 0.9% from July
• On an unadjusted basis, the index was up 1.2% from a year earlier and rose 1.6% 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% target
• The bank forecasts gross domestic product growth of 1.8% this year, slowing to 1.4% 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%
(Reporting by Marcela Ayres; Editing by Isabel Teles)
