Brazil’s industrial production shocked experts by increasing slightly in June, but the good data are unlikely to deter the central bank from initiating a monetary easing cycle later this week.
Industrial output in Latin America’s largest economy increased 0.1% in June compared to May, according to data from the statistics agency IBGE, outperforming the 0.1% dip predicted by analysts surveyed by Reuters.
The second month-on-month improvement in a straight was led by finished products, according to IBGE; however, the industry in Brazil remains in negative territory, having declined 0.3% in the period.
Industrial production in the nation has lately slowed due to high borrowing costs since Brazil’s benchmark interest rate has been set at a six-year high of 13.75% since August 2022 in order to combat excessive inflation.
When Brazil’s central bank’s monetary policy committee (Copom) completes its August meeting on Wednesday, it is largely expected to begin decreasing interest rates.
According to IBGE, industrial production increased 0.3% year over year in June, in line with market forecasts.
