Brazil seen cutting rates less aggressively

Rio de Janeiro - Brazil economists forecast the central bank will be less aggressive when cutting interest rates in 2017 as they boosted their expectations for economic growth and inflation.

The central bank will cut its benchmark rate to 11.25% next year, from a current 10-year high of 14.25%, according to a weekly central bank survey of economists released Monday.

 In the previous poll, the Selic was expected to fall to 11% by the end of 2017.

Expectations for growth and inflation in 2017 were revised upwards.

Economists now see gross domestic product expanding 1.23% in 2017 - up from 1.20% and 1.10% in the two previous surveys.

Inflation is expected to slow to 5.14%, compared to the 5.12% forecast in the previous survey.