Economists trimmed their growth expectations for Brazil's economy in 2011 to 3.09 percent compared with 3.10 percent a week ago, according to a weekly central bank survey published on Monday. The analysts also raised by a shade their forecast for Brazil's benchmark inflation index to 6.5 percent for 2011 from 6.49 percent previously.
The inflation outlook for 2012 eased to 5.49 percent compared with 5.56 percent seen a week ago. Brazil cut interest rates for the third straight time last week, to 11 percent from 11.5 percent, betting Europe's debt crisis and a weak global economy would slow inflation in Latin America's largest country.
The survey also showed analysts expected the benchmark interest rate, the Selic, to fall to 9.75 percent by the end of 2012, compared with a view of 10 percent last week. Growth for 2012 was estimated at 3.48 percent up from 3.46 percent a week ago. The exchange rate is seen ending this year at 1.79 real to the dollar, weaker than the 1.75 level seen a week ago. For 2012, the currency is expected to end that year at 1.75 real to the dollar also, a view unchanged from a week ago. Consumer inflation over the next 12 months was seen at 5.47 percent compared with 5.58 percent estimated a week ago.
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