BRASILIA: Brazil's central bank cut its economic growth forecast for 2014 and said it expects inflation to subside but remain high over the next two years, signaling policymakers may keep interest rates on hold for some time.
In its quarterly inflation report released on Monday, it lowered its 2014 economic growth forecast to 0.7 percent from 1.6 percent in its previous estimate.
The bank also cut its 2014 inflation forecast to 6.3 percent from 6.4 percent. For 2015, the bank raised its inflation forecast to 5.8 percent from 5.7 percent previously.
It estimated that the economy will likely grow at an annual rate of 1.2 percent in the second quarter of 2015.