Brazil’s July Activity Falls More than Expected Ahead of Rate Decision
Agriculture led the decline as industry also fell and services were flat, while economists expect another 25 basis point cut to 13.75%.
- Brazil's central bank reported on Wednesday that economic activity fell 0.2% in July, marking a second consecutive month of contraction for Latin America's largest economy.
- Elevated borrowing costs have weighed on activity as Brazil cools economically, following a revised 0.9% contraction in June that preceded July's decline.
- The central bank's IBC-Br index showed agriculture posted a 1.2% decline in July, while industry fell 0.4%; year-on-year, the index rose 1.1%.
- Policymakers will announce their next rate decision later Wednesday, with economists in a Reuters poll forecasting a 25 basis point cut to 13.75%.
- Andres Abadia, Pantheon Macroeconomics' chief Latin America economist, argued "The growth data increasingly argue for lower rates" while cautioning inflation requires gradual adjustment.
17 Articles
17 Articles
Brazil's July activity falls more than expected ahead of rate decision ...
The Central Bank's Economic Activity Index (CBI-Br) declined 0.2% in July compared to June, with seasonal effects discounted. It was the second consecutive monthly fall of the indicator, considered a thermometer of the performance of the Brazilian economy. The result was mainly pulled by the agricultural sector, which fell 1.2% in the month, and by the industry, with a fall of 0.4%. The service sector, which has the highest weight in the indicat…
The Central Bank's Economic Activity Index (CBI-Br), an indicator used to monitor the evolution of the Brazilian economy, declined 0.2% in July 2026 in comparison with June, reported the Central Bank of Brazil. In comparison with July 2025, the indicator showed growth of 1.1%. The fall observed in July (before June 2026) was the second consecutive negative result, after the decrease of 0.6% recorded in the previous month. The result was calculat…
The previous Gross Domestic Product (GDP), measured by the Central Bank's Economic Activity Index (CBI-Br), fell 0.22% in July before June, in the seasonally adjusted series, reported the Central Bank on Wednesday (16). In June, the indicator had fallen 0.88%, after reviewing the previous result of -0.64%. The result came below the median [...] The previous post of GDP (CBI-Br) fell in July and signaled deceleration in the 3rd quarter appeared f…
Brazilian economic activity declined 0.2% in July 2026 compared to June, according to the Economic Activity Index [...]
Brazilian economic activity declined 0.2% in July compared to June, according to data from the Central Bank Economic Activity Index (CBI-Br) released on Wednesday (16). The indicator is...
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