Brazil’s central bank says stronger activity driving inflation estimates higher

BRASILIA, June 27 (Reuters) – Brazil’s central bank said on Thursday that stronger-than-expected activity is the main reason behind its higher inflation projections, one of the factors that led it to halt interest rate cuts earlier this month.

In its quarterly inflation report, the central bank bumped its 2024 economic growth forecast to 2.3% from the 1.9% predicted in March.

According to the central bank, the move followed a more robust economic performance in the first quarter, accompanied by a drop in unemployment and rising wages.