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Brazil central bank expects gov’t to meet 2012 budget target

by on September 27, 2012 2:44 pm BST
 

BRASILIA, Sept 27 |
Thu Sep 27, 2012 10:44am EDT

(Reuters) – Brazil’s central bank expects
the government to meet its full primary budget surplus target
this year, bank director Carlos Hamilton Araujo said on
Thursday.

Three official sources told Reuters earlier this month that
Brazil is in danger of narrowly missing its budget goal, in
another sign that a long stretch of stagnation is causing the
government to relax its fiscal discipline.

The bank earlier on Thursday raised its inflation forecast
for 2012 to 5.2 percent from 4.7 percent previously. It also
slashed its economic growth estimate to a meager 1.6 percent
this year from 2.5 percent previously.