April 2, 2012 / 11:57 AM / 7 years ago

UPDATE 1-Economists cut Brazil 2012 GDP and inflation view

* 2012 GDP growth forecast revised down to 3.20

* Analysts lower inflation view to 5.27 percent (Adds details, background)

By Silvio Cascione

SAO PAULO, April 2 (Reuters) - Economists lowered their forecasts for economic growth and inflation in Brazil, a survey showed on Monday, reinforcing the view that the world’s sixth largest economy will take longer than previously expected to respond to a government stimulus program.

The weekly central bank survey, which tracks forecasts of the most widely watched economic indicators in Brazil, showed analysts cut their forecasts for 2012 gross domestic product growth to 3.20 percent, from 3.23 percent the prior week.

Analysts also revised down their outlook for inflation this year to 5.27 percent from 5.28 percent in last week’s survey.

Brazil’s central bank cut rates by a larger-than-expected 75 basis points to 9.75 percent in March after a sharp economic slowdown in the second half of 2011. The bank has been cutting rates since August.

The country’s benchmark interest rate is expected to end this year at 9 percent, the survey showed, unchanged from last week’s forecast.

The government’s efforts to spur growth is expected to be more effective in 2013, the survey showed, as analysts expect an expansion of 4.20 percent next year. The forecast, however, was also revised down from a previous reading of 4.29 percent.

The survey’s results are the median forecast of analysts at about 100 financial institutions.

The central bank targets inflation of 4.5 percent annually, with a tolerance range of plus or minus 2 percentage points. (Reporting by Silvio Cascione Editing by W Simon)

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