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Brazil central bank raises GDP forecast, sees inflation above target until 2026

BY Reuters | ECONOMIC | 12/19/24 06:18 AM EST

BRASILIA, Dec 19 (Reuters) - Brazil's central bank bumped up its economic growth forecast for this year to 3.5% from 3.2% and for next year to 2.1% from 2.0%, according to its quarterly inflation report released on Thursday.

The report's inflation projections show consumer prices above the upper limit of the bank's tolerance range until the third quarter of 2025. It would then start a downward trend, but stay above the official 3% target.

For 2026, the central bank estimated inflation at 3.6%. (Reporting by Marcela Ayres; Editing by Gabriel Araujo)

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