Brazil lowers economic growth projection

Brazil-s central bank has lowered its economic growth projection for financial year 2011 to 3.5% compared to earlier projection of 4%. It has projected the FY 2011 economic growth to be 4% in last June. Brazil-s economy grew at 7.5% in the previous financial year of 2010. The growth projection cut was mainly because of global slowdown and lower business and economic activity.

Brazil-s central bank has also cut the interest rate to 12% from earlier 12.5% in August in order to boost economic and industrial growth as it feared that higher interest rate to tame inflation can only derail the economic growth. All the emerging economies have lowered their growth projection because of global slowdown and high inflation. Recently IMF has lowered growth projection of all the countries including China, India, emerging economies etc.

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