The Brazilian central bank is keeping its benchmark interest rate unchanged at 6.5 percent, the lowest in history, Xinhua reports.
The Chinese government-run news agency quotes a statement issued yesterday by the monetary policy committee of the bank as saying the Brazilian economy is recovering from the effects of a strike in May by truck drivers all over the country, but that it is growing more slowly than before the strike.
The committee says the effect of the strike on inflation was temporary and that the rate of inflation will remain slow.
The government now expects the economy to grow by 1.6 percent this year, having previously forecast growth of 2.5 percent, Xinhua quotes Brazilian Finance Minister Eduardo Guardia as saying last month.
