Brazil central bank signals another steep interest rate hike

Brasilia

BRAZIL'S central bank sees inflation remaining above 4.5 per cent - the midpoint of its target range - for the next two years, hinting it could keep the aggressive pace of interest rate hikes to ease price increases in the future.

In its quarterly inflation report released on Tuesday, the bank lowered its 2014 economic growth forecast to 0.2 per cent from 0.7 per cent in its previous estimate - a long way from its initial forecast for an expansion of 2 per cent. It estimated that the economy would likely grow a…