Brazil’s economic activity dipped for the second consecutive month in June, reflecting the growing impact of the central bank’s stringent monetary policy. The central bank’s economic activity index, which serves as a proxy for gross domestic product, decreased by 0.06% compared to May, according to a report released Monday. Year-on-year, the index showed a modest increase of 1.38%, indicating that while the economy is still expanding compared to the previous year, short-term momentum is weakening. The persistent high interest rates are beginning to dampen consumer spending and business investment, key drivers of economic growth. Policymakers face the challenge of balancing inflation control with sustaining economic activity.
— news from Bloomberg.com
— News Original —
Brazil’s Activity Declines for Second Month on High Rates
Brazil’s economic activity declined for a second straight month in June as the central bank’s aggressive interest rate hikes begin to take hold. n nThe central bank’s economic activity index, a proxy for gross domestic product, fell 0.06% from May, according to a report published Monday. From a year ago, it gained 1.38%.