Brazilian CB raises growth outlook

Brazil's central bank raised its economic growth forecast as 16 consecutive rate cuts and low inflation fuels consumer spending.

The central bank raised its forecast for gross domestic product growth this year to 4.7% from a previous estimate of 4.1% in March. The forecast for 2007 inflation was cut to 3.5% from 3.8%, according to the central bank's quarterly report on inflation.

The central bank, led by Henrique Meirelles, reduced the overnight lending rate by half a percentage point to 12%

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